Medical Testing Lab Sues Anthem for Rejecting Invoices

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Genesis Diagnostics, a medical testing laboratory, has filed an ERISA and contract dispute lawsuit against Anthem Blue Cross Blue Shield of Virginia. Genesis alleges that Anthem has "blatantly disregarded" its obligations to pay Genesis for services rendered to Anthem's subscribers. The court has denied Anthem's motion to dismiss Genesis' claims under ERISA, breach of contract, and breach of the duty of good faith and fair dealing, finding Genesis' allegations sufficient to state these claims.

Why it matters

This case highlights the ongoing tensions between healthcare providers and insurance companies over coverage and payment disputes. It raises questions about insurers' obligations to pay for services rendered to their members, as well as the rights of providers who receive assignments of benefits from plan participants.

The details

Genesis, a medical testing business, alleges that Anthem has wrongfully denied or underpaid claims submitted by Genesis on behalf of Anthem's subscribers. Genesis claims it has valid assignments of benefits from Anthem's members that entitle it to pursue payment directly from Anthem. The court found Genesis' allegations sufficient to state claims under ERISA, for breach of contract, and for breach of the implied covenant of good faith and fair dealing. However, the court dismissed Genesis' fraud claim for failing to meet the pleading requirements.

• The lawsuit was filed in February 2026.

What’s next

The case will now proceed to further litigation as the court has denied Anthem's motion to dismiss the key claims.