JACKSON, Miss. (WJTV) – A state agency is requesting a federal court to dismiss a lawsuit intended to block enforcement of a new Mississippi law.
The Mississippi Insurance Department (MID) filed a motion to dismiss the Mississippi Association of Health Plans’s (MAHP) lawsuit. In it, the nonprofit representing health insurance companies asserts that recent legislation regulating reimbursements for ambulance services is unconstitutional. The law went into effect on July 1st.
MID, led by Commissioner of Insurance and State Fire Marshall Mike Chaney, made several arguments in support of its motion to dismiss the case. Firstly, MID argued that the Federal Court did not have the legal authority to hear it. Among other things, Chaney’s office also asserted that MAHP’s lawsuit did not list a legal issue that the court could address and that MAHP lacked standing. These points are disputed by the nonprofit’s complaint filed in late June.
MAHP’s original lawsuit sued to block the Mississippi Insurance Department (MID) from enforcing the Mississippi Triage, Treat and Transport to Alternative Destination Act. Among other things, Mississippi House Bill 1489 mandates insurance companies provide payment to ambulance services for certain treatments and sets standard reimbursement rates for health insurance policies.
Supporting the legislation is another organization representing many stakeholders: the Mississippi Ambulance Alliance (MAA). The group representing Pafford, AmeriPro, American Medical Response and other emergency services statewide support the law. MAA argued that the law is necessary because insurance companies often provide inadequate compensation to its members for their services.
“It is imperative that these services receive adequate compensation to sustain their operations and continue delivering high-quality medical and emergency care to our communities,” MAA said in a statement shared with WJTV 12 News.
Like MAA, MAHP also cited one-sided dynamics for reimbursement. However, it asserted that HB 1489 would cause it. MAHP predicted increased healthcare costs for Mississippians due to ambulance services being encouraged by law to raise the price of its services. Chaney’s office described MAHP’s claims as ‘nebulous, uncorroborated and unripe.’
MAHP members include Amerigroup, CareSource, CVS Health, Cigna Healthcare and UnitedHealthcare. The nonprofit filed the original lawsuit on June 28, days before HB 1489 went into effect. Governor Tate Reeves (R-Miss.) signed the bill into law on May 2, 60 days before its enactment date.
MID and the Mississippi Attorney General’s office previously declined to comment on the lawsuit, citing pending litigation.
