Colorado hospitals sue to block early collection of $40 million to lower insurance costs

By Meg Wingerter | The Denver Post

Colorado hospitals agreed to pay $40 million to fund a program to reduce insurance costs, but they’re balking at a proposed requirement that they pay it earlier than expected.

The Colorado Hospital Association, a trade group that represents most of the state’s hospitals, filed a lawsuit against the Division of Insurance on Tuesday. It argued the division violated public comment rules and overstepped its power by threatening to suspend hospitals’ licenses if they didn’t pay on time.

“The state didn’t follow the law,” said Julie Lonborg, senior vice president of the hospital association.

Continue reading on The Denver Post.

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