SAN FRANCISCO - The First District California Court of Appeal, Division Two, on April 24 affirmed a trial court ruling sustaining defendant Health Net Inc.'s demurrers in a Medicare Part D, prescription drug benefit, denial of benefits cause of action. The appeals court agreed with the lower court that the negligence claims against the insurance company are subject to administrative exhaustion and that the state fraud and unfair trade practices claims are preempted by the federal Medicare Act (Jordan Rosenberg v. Health Net Inc., No. A131756, Calif. App., 1st Dist., Div. 2; 2012 Cal. App. Unpub. LEXIS 3087).