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Action against HMO not preempted under Medicare Act

On Jan. 23, U.S. District Court Judge Timothy J. Savage issued a memorandum and order in Arlene Nott v. Aetna US Healthcare, Inc., Civ. Action No. 03-CV-4044, USDC (E.D.Pa. Jan. 23, 2004).  The case involves the right of subrogation in connection with a Medicare-substitute HMO. The Judge ruled that "although the Medicare Act permits HMOs to contract with their insured for subrogation, it does not provide a mechanism for them to enforce their private contractual rights." The judge ruled that the plaintiff's action "is not completely preempted and the well pleaded complaint rule warrants that it be remanded to the state court pursuant to 28 U.S.C. § 1447(c) for lack of subject matter jurisdication."

To view, print, or download a copy of the 13-page memorandum and order, click on the Related files link.

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