June 7 (Reuters) – A lawsuit by Humana (HUM.N), opens new tab seeking to block a Biden administration rule allowing Medicare to claw back billions of dollars from insurers for overcharges can go forward in Fort Worth, Texas, a federal judge ruled Friday, rejecting the administration’s bid to dismiss it or send it to nearby Dallas.
The order, opens new tab came from U.S. District Judge Reed O’Connor, a well-known conservative best known for his 2018 ruling that the Affordable Care Act, the federal health insurance law known as Obamacare, was unconstitutional.
That ruling was reversed, but O’Connor’s courtroom has remained a favored venue for conservative and business interests that have made use of Texas federal court rules that allow plaintiffs effectively to pick judges by filing their cases in small divisions.
The government argued that the case should have been brought in Dallas, where a Humana subsidiary is actually headquartered. But O’Connor said other factors, including the convenience of the parties and the court’s caseload, did not support a transfer.
Source: Humana can challenge Medicare clawback rule in Fort Worth, Texas – judge / Reuters