US Federal Judge Frederico Moreno issued a sweeping decision today granting class action status to the landmark case filed to combat widespread and chronic abuses by some of the nation’s largest for profit HMOs. The California Medical Association and individual physicians originally filed the lawsuit in May 2000. With other State Medical Associations joining in as plaintiffs, the lawsuit has since been consolidated with other litigation in the US District Court in Miami against major managed care companies.

The suit identifies Aetna, 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).

“The HMOs have long claimed that the doctors who have made these charges where basing their claims on isolated instances.” said Archie Lamb, co-lead council representing some of the major state medical societies in America. “The granting of class action status shows that the doctor’s charges against the HMOs of fraud and racketeering are consistent around the nation.”

“The HMO industry has been adamant that doctors would never obtain class action status in this suit,” said Lamb. “Well, the day has come and this vindicates the claims of abuse made by doctors around the country for the last decade.”

Lamb concluded, “Physicians around America have won a major victory today and this will be seen as a turning point for true healthcare reform.”

The court has also issued the following timeline for the trial:
• Trial Date: May 19, 2003
• Pretrial Conference: October 30, 2002
• Fact Discovery Deadline: January 20, 2003

View the Order:Order granting provider track class certification and denying subscriber track class certification ("00-1334-MD Moreno") re Managed Care Litigation - 09/26/02
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