According to an SEC filing, the CVS Health subsidiary surrendered much less than the $150 million HCA had originally sought.
Aetna, the CVS Health subsidiary, will pay HCA Healthcare-owned hospitals $86 million to settle arbitration proceedings regarding its out-of-network policies, significantly less than the $150 million the hospital operator sought in the case.
The settlement, announced as part of a Securities and Exchange (SEC) filing by CVS Health, brings an end to legal proceedings that originated in August 2015 when HCA Holdings, Inc. challenged Aetna's out-of-network "benefit payment and administration practices" in Florida from 2014 to 2016.
HCA claimed Aetna paid too little to its members as well as providers for services rendered while also failing to "timely or appropriately" administer claims or benefits.
Aetna stopped offering individual exchange products in the Sunshine State at the end of 2016.
While the trial arbitrator awarded the HCA hospitals the requested $150 million in October 2018, Aetna appealed the decision and the appellate arbitrator reduced the award to $86 million in late March.
CVS stated in the filing that it recorded the $86 million reduction in its Q1 earnings report as a "measurement period adjustment" to its Aetna acquisition accounting.
Jack O'Brien is the Content Team Lead and Finance Editor at HealthLeaders, an HCPro brand.
Photo credit: DECEMBER 2013 - BERLIN: the logo of the brand "Aetna". - Image / Editorial credit: 360b / Shutterstock.com