2 more hospitals drop out of suit against tiered health plan

TRENTON, N.J. -- Two more hospitals have dropped out of a legal fight against a new alliance formed by New Jersey's largest health insurer.

The Asbury Park Press reports Capital Health System and JFK Medical Center are the latest to be dismissed. That leaves only three of the original seven hospitals in the lawsuit against Horizon Blue Cross Blue Shield's OMNIA plan, which uses a tiered network and is touted as a money-saving way to cover health care.

The hospitals in the lawsuit worry the alliance demotes them to Tier 2, and Tier 1 hospitals will likely get more patients because of lower costs. An attorney for the group says the lawsuit will go forward.

Horizon says none of the hospitals that dropped out of the lawsuit have obtained a change to Tier 1.