Article: Supreme Court affirms states' health care surcharges.(New York State surcharges)

WASHINGTON - The Supreme Court yesterday handed states a victory by affirming their right to contain and finance health care costs through regulation of hospital rates, imposition of provider taxes, and other measures.

The unanimous ruling in New York State Conference of Blue Cross & Blue Shield Plans v. Travelers Insurance Co. said that New York State laws that impose surcharges on certain hospital patients to help control costs are not superseded by a federal law governing employee benefit plans.

The case asked whether the federal Employee Retirement Income Security Act preempted the state surcharges because they indirectly raised costs of plans regulated ...

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