A large group of insurers has won a class-action suit alleging that it was delaying and denying payments inappropriately. Plaintiffs in the massive suit--which included not only more than a dozen individual physicians, but also the California Medical Association, Texas Medical Association, Medical Association of George, Florida Medical Association and Louisiana State Medical Society--had claimed that a group of plans used claims processing software to delay, cut back and refuse payment of their fees.
This week, however, a U.S. district judge upheld an earlier ruling that there was not enough evidence that insurers underpaid physicians. The appeals judge dismissed all remaining claims. The decision should take a weight off of the shoulders of many health plans targeted by the suit, which included Coventry Health Care, Health Net, Pacificare Health Systems, Prudential, United Health Group, WellPoint and Anthem.