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Judge denies dismissals in United, Next Heath $100M fraud suit

A federal judge in Texas blocked United Healthcare and Next Health from escaping a suit claiming Next Health ran a $100 million kickback scheme, according to Law360.

 Here is a timeline of events:

1. United sued Next Health in January 2017, claiming Next Health defrauded it by billing for unnecessary drug testing.

2. Next Health filed counterclaims in October 2017, stating United Healthcare was attempting to use litigation to force out-of-network laboratory service providers out of business.

3. In its motion to dismiss, Next Health claimed United Healthcare’s law claims were preempted by the Employee Retirement Income Security Act and the Federal Employee Health Benefits Act.

4. District Judge Karen Gren Scholer denied in part Next Health’s motion to dismiss United Healthcare’s complaint, as well as United’s motion to dismiss Next Health’s counterclaims.

5. Judge Scholer rejected most of Next Health’s arguments that United Healthcare’s claims were preempted or barred under federal and state laws.

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