Settlement softens stance in talks between United and Care New England

Health Insurance Commissioner Christopher F. Koller on Monday withdrew his controversial new rules on hospital payments, but only as they apply to one set of negotiations between an insurer and a hospital group.

The decision comes two weeks after the Care New England hospital group filed suit against Koller, seeking to block his rules and saying that they were an impediment to negotiations with UnitedHealthcare of New England.

It remains unclear how Monday’s settlement will affect Koller’s unusual efforts to reshape health-care financing and control hospital costs throughout Rhode Island.