PHYSICIANS AND WELLPOINT, FORMER ANTHEM INC. AND WELLPOINT HEALTH NETWORKS INC. ANNOUNCE SETTLEMENT OF LANDMARK LITIGATION; - 07/11/05
Settlement will improve quality of health care, end administrative burden placed on physicians
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New York, NY - Wellpoint, representing over 28.5 million members, and representatives of over 700,000 physicians, state and local medical societies announced today the settlement of the national class action lawsuit pending in the federal court for the Southern District of Florida before U.S. District Judge Federico Moreno.
Similar to earlier settlements with Aetna, Cigna, Prudential and HealthNet, this settlement provides a mechanism by which physicians can obtain compensation in connection with the claims brought in the lawsuits. Wellpoint will establish a settlement fund in the amount of $135 million from which physicians can seek compensation. Wellpoint will contribute $5 million to a not-for-profit foundation whose mission is to promote higher quality health care and to enhance the delivery of care to the disadvantaged and underserved.
The prospective relief
requiring Wellpoint to implement important changes to its' business practices
will result in significant savings to physicians in overhead costs and time
spent contesting claims. The aggregate value of the company's expenditures and
other changes to business practices is approximately $250 million.
Additionally Wellpoint has agreed to pay
legal fees to be determined by the court, not to exceed $58 million. Final
judicial approval of the settlement agreement by Judge Moreno will extinguish
liability for lawsuits filed against Wellpoint over the last decade by
physicians and physician groups.
Full
Story...
WellPoint Reaches Pact With 700,000
Physicians - 07/11/05
Article from the
Wall Street Journal
Online
WellPoint
Inc., the biggest health insurer in the U.S., said today it reached an
agreement with more than 700,000 physicians to settle class-action lawsuits
over claims of unfair reimbursements to the physicians.
WellPoint said in a press release that it agreed to pay $135 million to
physicians and to contribute $5 million to a not-for-profit foundation to
promote higher-quality health care.
Also, the company will pay up to $58 million in legal fees, to be determined
by the court.
Full
Story...
WellPoint settles with physicians for nearly $200 million
- 07/11/05
Article from
Modern Physician
Online
Health plan giant WellPoint announced it will pay $198 million to settle
allegations brought in a class-action lawsuit by 18 state medical associations
on behalf of 700,000 physicians. The associations claimed the merged company
underpaid for physician services and let hospitals bill WellPoint members for
services the company should have paid. Under the settlement agreement,
WellPoint will pay $135 million to physicians; contribute $5 million to set up
a foundation to promote quality healthcare and improve healthcare delivery to
the uninsured; and pay up to $58 million in legal fees.
Full
Story...
WellPoint to Pay Up to
$198M in Settlement - 07/11/05
Article From
Forbes Online
WellPoint
Inc., the nation's biggest publicly traded health insurer, said Monday it will
pay up to $198 million to settle two class-action lawsuits brought by
representatives of more than 700,000 doctors over alleged unfair payment
practices.
As part of the settlement, the Indianapolis-based company said it has agreed
to pay $135 million to doctors and contribute $5 million to a nonprofit
foundation aimed at improving health care for the disadvantaged. It also said
it would pay legal fees of up to $58 million, in an amount to be determined by
the court.
The physicians contended they have been systematically cheated by insurance
companies that programmed computers to pay for less intensive services than
were actually provided.
"While not perfect, this settlement promises unfettered physician-patient
communication when it comes to discussing treatment options with their
patients," said Dr. John Antalis, president of the Medical Association of
Georgia, the first state medical association to sue the managed care industry
for improper payment practices.
Full
Story...
CMA Settles
Class-Action Lawsuit With Anthem/Wellpoint - 07/11/05
Article from the
California Medical Association
Online
In
a defining moment in their nationwide racketeering case against HMOs, the
California Medical Association and more than a dozen other state medical
associations representing more than 800,000 physicians agreed today to a
settlement with Wellpoint/Anthem, the largest remaining health plan defendant in
a class action lawsuit in U.S. District Court in Miami.
Full
Story...
WellPoint to settle underpayment cases - 07/11/05
Article from the Indianapolis Star Online
WellPoint Inc. has agreed to pay $198 million to settle two
national lawsuits filed by physicians that alleged underpayment by the health
insurance giant.
The agreement, if approved in federal court in Florida, calls for the
Indianapolis health benefits company to pay $135 million into a settlement fund
for physicians, up to $58 million in legal fees and $5 million to a
not-for-profit foundation that promotes better health care.
Publicly traded WellPoint will take a $103 million, or 10-cent-a-share charge,
in the second quarter to reflect costs of the settlement.
"We see this agreement as a very important step in further collaborating with
physicians," WellPoint President Larry C. Glasscock said in a statement.
Full
Story...
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