A contract’s a contract, the U.S. District Court, Northern District of Ohio held when it denied CBG Biotech, Ltd., a Columbus-based solvent recycling company, a preliminary injunction against its health care provider, United Healthcare Insurance Co. of Ohio.
CBG’s contract with United Healthcare stipulated that the insurance company could rescind the contract, terminate coverage or retroactively raise rates if any employees misrepresented their health in their applications. When United discovered a misrepresentation, it billed an additional $68,650 in retroactive rate increases. The court ruled that the terms were plainly stated and held CBG to the contract.
It’s painful, but contracts were made to be read.