O’Melveny’s Boyle Quoted on Lawsuit Over Georgia’s Prompt Payment Statute in AMBest

October 17, 2012

O’Melveny & Myers LLP Washington, DC partner and co-chair of the Firm’s Health Care and Life Sciences Practice Brian Boyle was quoted in the October 15, 2012, AMBest article “AHIP Sues Georgia Insurance Commissioner Over Prompt-Payment Amendments.” The article reported on the recent lawsuit instigated by American Health Insurance Plans (AHIP) against Georgia Insurance Commissioner Ralph Hudgens to prevent him from enforcing the state’s prompt-payment statute, which the AHIP claims is pre-empted by the federal Employee Retirement Income Security Act.

The Georgia prompt-pay amendments challenged in this lawsuit would, if enforced, "violate long-settled understandings about the supremacy of federal law with respect to self-funded health plans," stated Boyle, who also chairs the Firm's Financial Services Practice.

Boyle continued to explain that ERISA provides that state law may not deem a self-funded health plan to be engaged in the insurance business.