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RI hospital group sues over insurance rules

The Boston Globe, December 2, 2010

A Rhode Island hospital group has filed a lawsuit in an effort to block new health insurance rules intended to control hospital costs.

Care New England said in the suit filed Tuesday that Health Insurance Commissioner Christopher Koller overstepped his authority when he ruled in July that health insurers' new contracts with hospitals should change the hospital finance system and include limits on price increases.

Koller's rules apply only to insurers, but are affecting negotiations with hospitals.

Care New England, which oversees Butler, Kent, and Women & Infants hospitals, is in negotiations with an insurer over how much it will pay for services its members receive.

Koller said in a statement his decisions are consistent with the law.

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