American Interstate Insurance Co. argued it is not on the hook for the full $38 million Georgia hospital bill for two burn victims of a workplace explosion, Law360 reported July 11.
The insurer said in a Georgia federal court filing that it should have to pay only the $3.8 million it already paid to Doctors Hospital of Augusta for treating the victims, according to the report. American Interstate Insurance argued its payment is based on the insured workers' policy and the South Carolina Workers' Compensation Act. The victims were injured while working in Spartanburg, S.C., in November.
The company argued the amounts billed by Doctors Hospital of Augusta exceed the usual, customary and reasonable charges of treating a workers' compensation injury by millions of dollars, according to the report.