Nevada officials are suing an insurance company that they say wrongly refused to help pay a settlement in a patient busing case brought by San Francisco.
The Nevada Attorney General's Office filed the suit Wednesday in Las Vegas against The Insurance Company of the State of Pennsylvania, a subsidiary of multinational insurance company AIG.
The state spent $2.5 million defending itself and settling the case, and argues its insurer should cover costs above a $2 million deductible.
San Francisco sued Nevada in 2013, saying the state bused psychiatric patients to California after discharge without confirming whether they had a support structure there. The suit alleged it cost $500,000 to care for the patients.
Nevada settled last year for $400,000.
Officials with AIG didn't immediately respond to a request for comment.
