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Changes in laws can create contract disputes between companies

New Jersey residents are all probably familiar with the Obama Administration's efforts to open up health care insurance coverage to Americans of lower economic means. The effort is in part based in the Affordable Care Act and that law has created some tensions between medical providers, insurance companies and the patients who should be benefitting from improved medical insurance coverage. Generally speaking, medical providers are finding it challenging to cover the differences in cost that result when insurance companies are billing to patients at lower rates and when the cost of medical service continues to rise.

A cancer treatment group and a medical insurance company have been add odds over this very issue and are embroiled in a contract dispute. The requirements of the Affordable Care Act have forced the businesses to reassess the agreement they created between them in order to accommodate for the relatively new law. When laws change and contract terms are called into question businesses can find themselves in litigation.

The Affordable Care Act is just one law that is currently causing medical and insurance companies to reevaluate their contractual relationships and try to fix any new contract disputes that may arise. Other laws can also affect existing business agreements and can force corporate parties to reevaluate how they may permissibly do business so that they respect the law and still find success in their endeavors.

Regulations and laws are ever-present in the business world. When they change or are created they can create difficult problems for companies that were designed to operate under previously executed legal schemes. Renegotiating contracts and finding compliance with laws can be complex legal matters that New Jersey businesses must undertake.

Source: Albany Business Journal, "How the Affordable Care Act is transforming health insurance in the new year," David Robinson, Dec. 15, 2014

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