Reference no: EM131709253

Question: A medical center sued a major insurance company in state court, contending that the insurance carrier had breached its contract with the center's hospital by failing to reimburse it for the full contractual amounts when the hospital rendered services to the carrier's insured patients. The insurance company removed the case to federal district court, claiming that the controversy was essentially federal in nature, involving a welfare benefit plan regulated by ERISA. The medical center moved to have the case remanded to state court, pointing out that ERISA exempts from its coverage, among other things, insurance contracts. Who is right? See Lakeview Medical Center v. Aetna Health Management, Inc. [2000 WL 1727553 (E.D. La.)].