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Doctors' Right to Sue Insurers for Racketeering Upheld in Florida Court


[ Policyholder Awareness/Preparedness Forum ]

Posted by tonyb on December 12, 2003 at 12:20:35

Wednesday, Dec 10, 2003

A federal judge upheld the right of doctors to seek damages from insurance companies under the federal antiracketeering law according to a report in the New York Times.

The physicians contend that the health insurance companies often refused to permit the doctors to carry out the procedures they thought best and regularly cut back on payments for medical services.

The judge ruled that the California and Texas medical associations, which filed the suit on behalf of the nation's doctors, had legal standing to ask him to require the insurers to change business practices under the Racketeering Influenced and Corrupt Organizations Act, the Times reported.

The defendants include the United Healthcare unit of the UnitedHealth Group, Coventry Health Care, Wellpoint Health Networks, Humana, Pacificare Health Systems and Anthem Blue Cross and Blue Shield.

Two other managed-care companies, Aetna and Cigna, settled with the doctors for $120 million and $85 million respectively and withdrew from the suit earlier this year promising to change their business practices.

Reprinted courtesy of CollisionWeek (www.collisionweek.com)



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