October 15th, 2003 - Physicians’ Settlement Agreement with Aetna Final Judicial Approval Due Soon

U.S. District Court Judge Moreno Conducts Final Judicial Approval Hearing in Miami on Tuesday

Miami, Fl----U.S. District Court Judge Federico Moreno conducted the required final judicial approval hearing in the landmark settlement agreement in the national class action pending before him in the federal court for the Southern District of Florida on Tuesday afternoon. The hearing is the final open court procedure prior to his final ruling on the agreement that is expected within the next couple of weeks. The landmark settlement agreement, entered into on May 21, 2003, includes industry-leading improvements to physician-related business practices that set new levels of transparency in paying claims, a dramatic reduction in overhead costs for doctors and an acceptance of a set of general industry standards.

Judge Federico Moreno granted preliminary approval of the settlement agreement in Miami in June. The settlement agreement the subject of Tuesday’s final judicial approval hearing was in response to a lawsuit filed to combat widespread and chronic abuses by some of the nation’s largest for-profit health maintenance organizations (HMOs). The suit identified Aetna, as well as United Healthcare, CIGNA, Coventry, Wellpoint, Humana Health Plan, Inc, Pacificare Health Systems, Inc, & Anthem Blue Cross Blue Shield as co-conspirators who have violated contracts and defrauded doctors in violation of the federal Racketeer Influenced and Corrupt Organization Act (RICO). A settlement agreement with defendant CIGNA was reached in September with preliminary approval granted by Judge Moreno. The lawsuit against all other defendants continues before Judge Moreno.

At the conclusion of Tuesday’s session, Judge Moreno indicated that he would rule within a matter of weeks. The Attorney General’s Office for the state of Florida spoke in support of the agreement as well as representatives of both the Plaintiffs and Defendants. Other interested parties also participated in the five hour session.

The case is being heard in the United States District Court, Southern District of Florida, Miami Division: MDL No. 1334; Master File No. 00-1334-MD-Moreno. Additional background information on the case can be found online at www.hmocrisis.com . That site includes a complete copy of the settlement agreement as well as the joint press release announcing the settlement on May 21, 2003.

For additional information concerning HMO litigation, please visit the HMO Crisis Newsroom.