Walker v. Group Health Services, Inc.

KAUGER, J.:

11 We retained this cause to determine: 1) whether a health maintenance organization (HMO) 1 may be liable to a state employee for bad faith breach of an insurance contract; and 2) whether, when an insured has received payment for disputed . medical expenses, the requirements for exhaustion of administrative remedies of 74 O.S8. Supp.1999 § 1306(6) 2 and OAC 360:1-5-1 (1997) 3 extend to claims for bad faith. 4 Consistent with Cannon v. Lane, 1993 OK 40, T14, 867 P.2d 1235, we hold that a state employee may sue a health maintenance organization for bad faith breach of the insurance…