Case Updates
Fifth Circuit upholds limitation of penalties under Texas prompt pay statute
February 10, 2016
The Fifth Circuit held that Texas’s Prompt Pay Act does not apply to self-funded benefit plans and upheld the District Court’s ruling in favor of Health Care Service Corporation.
U.S. Chamber urges Fifth Circuit to uphold limitation of penalties under Texas prompt pay statute
October 27, 2015
In its brief, the U.S. Chamber urged the Fifth Circuit to affirm a district court’s judgment that Texas’s Prompt Pay Act does not apply to insurance companies acting as third-party administrators for a preferred provider benefit plan.
The brief explains that third-party administrators are not acting as insurers under the Texas statute. The brief also argues that, to the extent the Texas statute were construed to apply, it would be preempted by ERISA, which imposes uniform rules for ERISA plan administration.
The brief was filed jointly with America’s Health Insurance Plans and the American Benefits Council.
Robert I. Howell and Evan A. Young of Baker Botts L.L.P. served as co-counsel for the amici in this case.
Case Documents
- Opinion and Order -- HCSC v. Methodist Hospitals (U.S. District Court).pdf
- Brief of Appellant -- Methodist Hospitals v. HCSC (CA5).pdf
- Texas Hospitals Amicus Brief -- Methodist Hospitals v. HCSC (CA5).pdf
- U.S. Chamber Amicus Brief -- HCSC v. Methodist Hospitals (CA5).pdf
- Opinion -- HCSC v. Methodist Hospitals (CA5).pdf