Sealed Legal Pleadings Plague Health Care Litigation

“Since when do billion-dollar vendors get to file an appeal in a public court of law – of a public contract – funded with public dollars, affecting public employees – behind closed doors?”

By Chris Deacon

Yesterday, Bloomberg reported that Elevance Health is appealing the loss of its NYC health-plan contract to its competitor, UnitedHealthcare.

The company argues the procurement was flawed and is asking the appellate court to restore its bid — a fight that could determine who manages coverage for hundreds of thousands of city workers, retirees, and dependents.

But what I noticed? Elevance Health has successfully sought to seal the legal pleadings and key records in the case, keeping portions of its challenge and the underlying procurement materials out of public view.

And that, to me, is the real story.

Since when do billion-dollar vendors get to file an appeal in a public court of law – of a public contract – funded with public dollars, affecting public employees – behind closed doors?

Why do our courts allow public procurement to be shrouded in secrecy simply because a powerful bidder asks for it? Every major case I’ve seen like this have been hidden behind court seal orders after claims of “confidential commercial information” and “trade secrets.”

News flash – I don’t think your business tactics are much of a trade secret anymore… the jig seems to be up for most of us paying attention.

When these enormous entities are able to convert open public processes into private battles, the harm goes far beyond one contract.

It erodes transparency – to the extent it exists today.

It erodes oversight – (same comment as above).

And it erodes public trust — not just in the vendor, but in the entire system meant to guard taxpayer dollars (same …).

Secrecy has become the norm every time a major health-care vendor doesn’t like the outcome. The public isn’t stakeholder anymore — it’s a bystander.