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Calif. insurance commissioner joins whistle-blower lawsuit against Sutter Health, insurer
Modern Healthcare

The insurance commissioner of California has joined a whistle-blower lawsuit against Sutter Health and a managed-care company, alleging that they fraudulently manipulate anesthesia billing codes and drive up overall healthcare costs.

The 31-page motion alleges that Sutter, along with MultiPlan, New York, and other payers and providers, routinely bill for anesthesia services even though the services are either not provided or are paid for directly through anesthesia providers who don’t work for the hospitals. Sutter denied the allegations and vowed to vigorously defend itself.