CommunityCare, a Tulsa, Okla.-based health insurer, is cancelling its contract with Tulsa-based Hillcrest HealthCare System, according to Tulsa World.
Only about 6,500 of CommunityCare's 140,000 members are affected by the contract being severed.
The move comes amid allegations Hillcrest overbilled CommunityCare members. CommunityCare claims 34 members with HMO plans contacted the insurer since late 2016 to complain about Hillcrest overbilling them by a combined $400,000.
Hillcrest told Tulsa World CommunityCare's allegations are "false and irresponsible."
"CommunityCare's public notice of termination is surprising and disappointing, given that we have been working together for months on re-negotiating our contract," Hillcrest said in a statement to Tulsa World. "We vehemently deny any allegations of wrongdoing; to claim that any of the billing practices in question violate state law is an egregious misstatement not based in fact."
CommunityCare's attorney argues Hillcrest violated the contract between the two entities by practicing balance billing.
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