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New York State Conference of Blue Cross and Blue Shield Plans v. Travelers Insurance Co.

United States Supreme Court
514 U.S. 645 (1995)


Facts

New York state law established a scheme regulating hospital rates for inpatient care. The law required hospitals to assess surcharges (1) against patients who had insurance plans administered by some commercial insurers and (2) against some health-maintenance organizations (HMOs). This surcharge was not required for patients insured by a Blue Cross and Blue Shield plan. Commercial insurers who administered plans governed by the Employee Retirement Income Security Act of 1974 (ERISA), 29 U.S.C. § 1140, sued state officials, arguing that ERISA preempted the New York provisions requiring surcharges. The New York State Conference of Blue Cross and Blue Shield Plans, Empire Blue Cross, and Blue Shield (defendants) intervened as defendants. The New York State Health Maintenance Organization Conference and several HMOs (plaintiffs) intervened as plaintiffs. The district court granted summary judgment to the plaintiffs. The court of appeals affirmed. The defendants appealed.

Rule of Law

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Issue

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Holding and Reasoning (Souter, J.)

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  • A “yes” or “no” answer to the question framed in the issue section;
  • A summary of the majority or plurality opinion, using the CREAC method; and
  • The procedural disposition (e.g. reversed and remanded, affirmed, etc.).

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