Settlements and Verdicts

Price Fixing

Kansas City, KS: (Mar-19-08) A class action lawsuit was brought against Humana Inc. and other insurers, alleging that the companies engaged in a conspiracy to suppress payments to physicians. Blue Cross and Blue Shield of Kansas City, United Healthcare and Coventry Health Care of Kansas Inc. were also named as defendants in the class action suit filed in 2005. The suit alleged that the business practices of the health insurers violated antitrust laws by fixing prices and engaging in other monopolistic behavior, such as refusing to negotiate reasonable reimbursements.

Sources stated that a settlement has been reached in the case, in which Humana agreed to pay the doctors $2.8 million in cash. The agreement is said to affect 2,200 doctors, who are eligible to participate in the settlement. Legal sources claimed that the doctors will split the money based on billings to Humana over a three-year period. Additionally, the company also agreed to process and pay physician bills in an accurate and timely manner. The company said it does not admit any wrongdoing in agreeing to settle, but has done so in order to avoid the costs and risks of litigation. [THE KANSAS CITY STAR: HUMANA AGREES TO SETTLEMENT WITH AREA DOCTORS]

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