Settlement Reached in Dispute Over Reinsurance Coverage for Transplant Patient’s Care

GALVESTON, Texas — The parties in a Texas federal lawsuit in which a reinsurer is accused of wrongfully denying a health insurer’s claim for costs arising from a heart transplant patient’s hospital care have reached a settlement, according to a recent filing.

On Nov. 21, Health First Health Plans Inc. and American National Insurance Co. (ANIC) informed Judge Jeffrey Brown that they expect the settlement to be finalized by Dec. 18.

In response, Judge Brown stayed all current deadlines, including Health First’s deadline to object to a report and recommendation in which a magistrate judge opined that ANIC is …