Litigation against UnitedHealth, Oxford and other health insurers over withheld claim payments is bound for state court—with an advisory to future litigants that such cases are contract disputes lacking federal law issues.

U.S. Magistrate Judge Mark Falk held Tuesday that the “core of the case is the interpretation of the two contracts between the plaintiff hospital and the defendant insurers” and “is not based on any particular assignment nor any substantial federal issue.”

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