Class-Action Status Is Upheld for Doctors Suing Insurers | NYT | 9.2.04
An appeals court upheld class-action status yesterday for a lawsuit brought on behalf of at least 600,000 doctors contending that six of the nation’s largest health insurers regularly reduce payments for medical services.
A three-judge panel of the United States Court of Appeals for the 11th Circuit, in Atlanta, ruled that the defendants - WellPoint Health Networks, UnitedHealth Group, Prudential Insurance, PacifiCare Health Systems, Health Net and Humana - must stand trial on charges of violating the federal Racketeering Influenced and Corrupt Organizations Act, or RICO. Health insurance lawyers had said that the appeals panel ruling would be crucial to the case’s outcome. …
Archie Lamb, one of the 175 plaintiffs’ lawyers in the case, said it would go to trial on March 6 in Miami. …
Two managed care companies, Aetna Inc. and the Cigna Corporation, have settled with the plaintiffs, which include the medical associations of California and Texas. Aetna agreed to pay the plaintiffs $120 million; Cigna agreed to pay $85 million.
Mr. Lamb said those payouts could grow to $500 million to $1 billion depending on follow-up claims by individual doctors. The lawyers have been awarded an additional $55 million, he said.
via HealthLawBlog
That’s an [add]itional (on average) $314,285.71 per trial lawyer and $1,666.67 per class member (physician)—being a lowly provider of service is obviously at the wrong end of the trough.