A federal appeals court in Atlanta on Wednesday ruled that a class action lawsuit brought on behalf of 900,000 doctors against eight of the nation’s largest healthcare managed organizations (HMOs) may go to trial, The Associated Press reported.
The doctors accuse the HMOs of engaging in a conspiracy to underpay them by programming their computer systems to routinely deny parts of their fees.
The lawsuit names as the defendants – WellPoint Health Networks, UnitedHealth Care, Humana, Health Net, Coventry Health Care, PacifiCare Health Network, Anthem and Prudential – accusing the HMOs of violating the federal Racketeering Influenced and Corrupt Organization Act, or RICO. Two HMOs that were initially named as defendants, Aetna Inc. and the Cigna Corporation, have settled with the plaintiffs.
The HMOs opposed the class-action status, arguing it could be detrimental to their business, the Associated Press Reported.
“If their fears are truly justified, the defendants can blame no one but themselves,” Judge Gerald Tjoflat wrote in the unanimous decision. “It would be unjust to allow corporations to engage in rampant and systematic wrongdoing, and then allow them to avoid a class action because the consequences of being held accountable for their misdeeds would be financially ruinous.”
The case is scheduled to go to trial on March 6 in Miami.
(via The Associated Press)
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