Caraballo v. Elec. Boat Corp.
Annotate this CasePlaintiffs were employees of Employers when they each suffered compensable injuries. Plaintiffs were treated at two different hospitals. In each case, the hospital submitted a bill for its services to Employer. Employer paid each hospital in accordance with the cost assessment of a third-party bill reviewer, which in each case was significantly less than what had been billed by the hospital. The hospitals subsequently sought to have the workers’ compensation commissioner determine Employer’s liability for the hospital costs. At issue was whether Employer’s liability for the hospital services should be assessed on the basis of the commissioner’s determination of what it “actually cost” the hospitals to render the services, as provided under Conn. Gen. Stat. 31-294d(d), or on the basis of the hospitals’ published rates that they are required to charge “any payer” under Conn. Gen. Stat. 19a-646. The commissioner concluded that the two cases were controlled by Burge v. Stonington, in which the Supreme Court concluded that the “actually costs” language in the predecessor to section 31-294d(d) had been repealed or preempted in 1973 when the legislature first regulated hospital rates. The Supreme Court affirmed, holding that the public health scheme governing hospital rates for payers generally controlled the cases here.
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