Arthur J. Gallagher Risk Management Services LLC controversies
Controversies tied to this brand in public sources. A listing is not a finding of fault.
Back to profile1 entries
2026
Kern Health Systems sues former reinsurance broker and reinsurer over $7.6 million in allegedly misclassified claims
Lawsuit filed
Kern Health Systems Inc., a California health plan operator, filed a complaint on Sept. 16 in the U.S. District Court for the Eastern District of California against its former reinsurance broker Arthur J. Gallagher Risk Management Services LLC and a reinsurer. The complaint alleges that more than $7.6 million in claims submitted by a long-term acute care facility were misclassified as non-covered rehabilitation services claims and were therefore covered under the excess-of-loss reinsurance policy.
Source excerpt
A health plan has sued its former reinsurance broker and reinsurer in California federal court, accusing them of misclassifying more than $7.6 million in long-term acute care claims as non-covered rehabilitation services claims.
In a Sept. 16 complaint filed in the U.S. District Court for the Eastern District of California, Kern Health Systems Inc. alleges the claims were submitted by a long-term acute care facility, not a rehab facility, and were therefore covered under the excess-of-loss reinsurance policy.
Kern operates health care service plans in California.