Major HMO's Fail to Stop Class Action Suit Brought by 700,000 Physicians

Industry Has Claimed Doctors' Suit "Based on Sand."

Doctors' Attorneys Prepare for Trial

U.S. District Court Judge Federico Moreno ruled that many of the nation's largest managed care companies must stand trial as co-conspirators who have violated contracts and defrauded doctors in violation of the federal Racketeer Influenced and Corrupt Organization Act (RICO).

The industry had requested the court to dismiss the RICO Class Action Suit filed by over 700,000 physicians to combat widespread and chronic abuses by some of the nation's largest for-profit health maintenance organizations (HMOs). The original suit identified Aetna, as well as United Healthcare, CIGNA, Coventry, Wellpoint, Humana Health Plan, Inc, Pacificare Health Systems, Inc, & Anthem Blue Cross Blue Shield.  Both Aetna and Cigna have made landmark settlements with the physicians that have led to industry leading reforms.

 "Judge Moreno's order is very encouraging for all of America's physicians.  This case represents the beginning of a new and positive relationship between physicians and the nations health plans." Said Dr. Jack Lewin, CEO of the California Medical Association.

"This ruling confirms the entire basis on which this landmark case is founded.  We look forward to moving ahead on behalf of our patients to correct the abuses of the managed care industry" Said Dr. Bohn Allen, President-elect Texas Medical Association.

The industry has long fought this suit and Stephanie Kanwit, General Counsel for the major HMO's trade association said to CBS Evening News on July 1, 2002, "These cases are not sensible law, they're not based on--they're based on sand."

"This ruling underscores the legitimacy of the physician's claims despite the industry's attempt to stop the case from beginning, " said Archie Lamb, co-lead counsel for the physicians.  "The team of over 200 attorneys who represent the 700,000 physicians have been preparing to take this case to court.  Our clients now look forward to their day in court."