Abira Medical Laboratories, LLC d/b/a Genesis Diagnostics v. Blue Cross Blue Shield of Rhode Island

CourtDistrict Court, D. Rhode Island
DecidedFebruary 9, 2026
Docket1:24-cv-00475
StatusUnknown

This text of Abira Medical Laboratories, LLC d/b/a Genesis Diagnostics v. Blue Cross Blue Shield of Rhode Island (Abira Medical Laboratories, LLC d/b/a Genesis Diagnostics v. Blue Cross Blue Shield of Rhode Island) is published on Counsel Stack Legal Research, covering District Court, D. Rhode Island primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Abira Medical Laboratories, LLC d/b/a Genesis Diagnostics v. Blue Cross Blue Shield of Rhode Island, (D.R.I. 2026).

Opinion

UNITED STATES DISTRICT COURT FOR THE DISTRICT OF RHODE ISLAND

) ABIRA MEDICAL LABORATORIES, ) LLC d/b/a GENESIS DIAGNOSTICS, ) Plaintiff, ) ) v. ) C.A. No. 24-cv-475-MRD-PAS ) BLUE CROSS BLUE SHIELD OF ) RHODE ISLAND, ) Defendant. ) )

MEMORANDUM AND ORDER Melissa R. DuBose, United States District Judge. Before the Court is Defendant Blue Cross Blue Shield of Rhode Island’s (“BCBSRI”), Amended Motion to Dismiss under Fed. R. Civ. P. 12(b)(6). ECF No. 16. The Complaint filed by Plaintiff, Abira Medical Laboratories LLC d/b/a Genesis Diagnostics (“Abira”), asserts a claim under the Employee Retirement Income Security Act of 1974 (“ERISA”) (Count I), breach of third-party beneficiary contract (Count II), breach of third-party bad faith claims (Count III), quantum meruit/unjust enrichment (Count IV), and negligence (Count V). ECF No. 1. BCBSRI argues that the Complaint is deficient because Abira fails to identify any insurance contract or specific contract provision that entitles it to reimbursement for services rendered. Abira counters that it has asserted a valid assignment of benefits, provided enough information in “Exhibit 1” attached to its Complaint, and suggested it could not provide the contracts/health plans because they are within BCBSRI’s control. The insurance contracts at issue are purportedly between BCBSRI and their insureds and govern the parties’ obligations under the contract, including whether BCBSRI had any obligations to reimburse third-party service providers for services rendered.

For the reasons explained in detailed below, this Court GRANTS the Amended Motion to Dismiss. I. BACKGROUND A. Factual Background The following facts are as alleged in Abira’s Complaint. Abira operates a licensed medical testing laboratory that performs clinical laboratory, pharmacy, genetics, addiction rehabilitation, and other testing services on specimens submitted

by medical service providers. ¶ 8; ECF No. 1. This testing is done on behalf of patients across the country, including some who are insured by BCBSRI. . Abira believes the insureds obtained insurance policies through their respective employers who participated in group health insurance plans and offered said plans to their employees. . ¶ 19. These employer-sponsored policies are employee benefit plans that are regulated by ERISA. . ¶ 20.

The requisitions for laboratory testing submitted on behalf of the patients contained assignments of benefits. . ¶ 9. Abira relies on the assignment of benefits clauses as creating a binding contractual obligation on BCBSRI to pay for Abira. . The assignment of benefits states: I hereby assign all rights and benefits under my health plan and direct payments be made to Genesis Diagnostics for laboratory services furnished to me by Genesis Diagnostics. I irrevocably designate authorize and appoint Genesis Diagnostics or its assigned affiliates as my true and lawful attorney-in-fact for the purpose of submitting my claims and pursuing any request, disclosure, appeal, litigation or other remedies in accordance with the benefits and rights under my health plan and in accordance with any federal or state laws. If my health plan fails to abide by my authorization and makes payment directly to me, I agree to endorse the insurance check and forward it to Genesis Diagnostics or its assigned affiliates to contact me for billing or payment purposes by phone, text message, or email with the contact information that I have provided to Genesis Diagnostics, in compliance with federal and state laws.

. ¶ 10. In situations where the insureds did not execute requisitions with this assignment of benefits clause, Abira suggests that the insurance contracts between BCBSRI and its insured were intended to benefit Abira as a third-party medical provider. . ¶ 11. Attached to the Complaint as Exhibit 1 is a spreadsheet that includes the patients to whom laboratory testing services were rendered along with dates of service, amounts billed, ascension numbers, and other information. . ¶ 12; ECF No. 1-1. Abira performed services for each of these individuals and submitted claims for payment to BCBSRI. . ¶¶ 12-13. According to Abira, BCBSRI failed to respond at all to properly submitted claims, fabricated pretextual reasons to refuse payment, and underpaid other claims. . ¶¶ 14, 28. BCBSRI explained to Abira that the payments were denied due to a lack of adequate claim information provided by Abira, untimely filing of claims, and lack of coverage by the insured for the services provided. . ¶ 15. Abira claims that BCBSRI owes it over $1,758,484.00. . ¶ 1. B. Procedural Background BCBSRI moved to dismiss Abira’s Complaint on January 10, 2025 to which Abira responded on January 24, 2025. ECF Nos. 9, 10. After reviewing those filings, the Court scheduled a conference with the parties to discuss whether they would be willing to exchange health plans and data for a sample of Plaintiff’s benefits claims since they are central to Abira’s Complaint. This process proved to be futile as Abira

ignored BCBSRI’s attempts to engage in this document exchange. ECF No. 16 (BCBSRI detailing the procedural history and its attempts to engage Abira in document exchange). As a result, the Court abandoned this course and allowed BCBSRI to file an Amended Motion to Dismiss, which it did on September 26, 2025. On January 22, 2026, the Court heard arguments on the Amended Motion to Dismiss. II. LEGAL STANDARD To survive a motion to dismiss under Fed. R. Civ. P. 12(b)(6), the complaint

must state a claim that is plausible on its face. , 550 U.S. 544, 570 (2007). A plaintiff’s “factual allegations must be enough to raise a right to relief above the speculative level.” at 555. A claim is facially plausible “when the plaintiff pleads factual content that allows the court to draw the reasonable inference that the defendant is liable for the misconduct alleged.” , 556 U.S. 662, 678 (2009). In considering a motion to dismiss, the Court must draw all

reasonable inferences in the plaintiff’s favor, and determine whether the Complaint, when taken in the light most favorable to the plaintiff, sets forth sufficient facts to support the claim for relief. , 228 F.3d 24, 30 (1st Cir. 2000); , 142 F.3d 507, 508 (1st Cir. 1998). III. DISCUSSION In the Amended Motion to Dismiss, BCBSRI argues for dismissal on several grounds, some of which were not raised in its initial motion to dismiss. ECF No. 16.

In addition to attacking each claim on the merits, BCBSRI now argues that Abira’s claims are barred by anti-assignment provisions that are standard in every BCBSRI health plan and that the claims are time-barred. ECF No. 16 at 6–11. To consider these two arguments, the Court first needs to determine whether it can rely on the seven sample health plans containing the anti-assignment provisions and the Declaration of Avital Chatto, Vice President and Deputy General Counsel at BCBSRI, that BCBSRI attached to its motion. ECF No. 16-1. Abira suggests it is improper for

the Court to consider the sample health plans, and that the claims are not barred by the anti-assignment provision or time-barred by the four-year contractual limitation contained in the sample plans. ECF No. 18 at 9–15. The Court will first address these threshold arguments before moving on to BCBSRI’s arguments in support of dismissing Counts I-V.

Free access — add to your briefcase to read the full text and ask questions with AI

Related

Bell Atlantic Corp. v. Twombly
550 U.S. 544 (Supreme Court, 2007)
Ashcroft v. Iqbal
556 U.S. 662 (Supreme Court, 2009)
Beddall v. State Street Bank & Trust Co.
137 F.3d 12 (First Circuit, 1998)
LaChapelle v. Berkshire Life Insurance
142 F.3d 507 (First Circuit, 1998)
Ruiz Rivera v. PEIZER PHARMACEUTICALS, LLC
521 F.3d 76 (First Circuit, 2008)
Valerie Watterson v. Eileen Page
987 F.2d 1 (First Circuit, 1993)
Braden v. Wal-Mart Stores, Inc.
588 F.3d 585 (Eighth Circuit, 2009)
Davis v. New England Pest Control Co.
576 A.2d 1240 (Supreme Court of Rhode Island, 1990)
Skaling v. Aetna Insurance
799 A.2d 997 (Supreme Court of Rhode Island, 2002)
Finch v. Rhode Island Grocers Association
175 A.2d 177 (Supreme Court of Rhode Island, 1961)
Richard v. Blue Cross & Blue Shield
604 A.2d 1260 (Supreme Court of Rhode Island, 1992)
Forcier v. Cardello
173 B.R. 973 (D. Rhode Island, 1994)
Cathay Cathay, Inc. v. VINDALU, LLC
962 A.2d 740 (Supreme Court of Rhode Island, 2009)
Franklin Grove Corp. v. Drexel
936 A.2d 1272 (Supreme Court of Rhode Island, 2007)
Corsini v. United Healthcare Services, Inc.
145 F. Supp. 2d 184 (D. Rhode Island, 2001)
Process Engineers & Constructors, Inc. v. DiGregorio, Inc.
93 A.3d 1047 (Supreme Court of Rhode Island, 2014)
Martinez v. Petrenko
792 F.3d 173 (First Circuit, 2015)

Cite This Page — Counsel Stack

Bluebook (online)
Abira Medical Laboratories, LLC d/b/a Genesis Diagnostics v. Blue Cross Blue Shield of Rhode Island, Counsel Stack Legal Research, https://law.counselstack.com/opinion/abira-medical-laboratories-llc-dba-genesis-diagnostics-v-blue-cross-rid-2026.