On Tuesday, the U.S. Supreme Court ruled that health insurers in Vermont cannot be compelled to hand over data on medical expenses. In doing so, they’ve backed the Liberty Mutual Insurance Co’s contention that such requirements must be prohibited by federal law. The ruling will likely put limits on similar laws in various other states.
Vermont was just one of eighteen states that had a data collection law. Liberty Mutual has argued that such a requirement posed a problem for companies that operate on a national level. This problem was due to the multiple mandates that such companies have to adhere to whilst operating in various states. A federal appeals court has backed the challenge to the Vermont law while the Obama administration sided firmly with Vermont in the case.
