Aetna dismisses overbilling lawsuit against Mednax

COVID-19 lawsuit
Aetna has voluntarily dismissed a 2018 lawsuit it filed against Mednax. (Photo by Maica/iStock/Getty Images Plus.)

Aetna has voluntarily dismissed a lawsuit it filed against medical group Mednax, which alleged that the provider ordered unnecessary testing to the tune of millions in improper payments.

In a document filed Wednesday, the insurance giant, which is now owned by CVS Health, dismissed the case with prejudice. Each side will bear its own legal costs, according to the filing.

Aetna claimed in the 2018 lawsuit that Mednax's subsidiary, Pediatrix Medical Group of Florida, exaggerated the condition of newborns to order unneeded tests, leading to $50 million in overbilling.

In the suit, Aetna said it first reached out to Mednax with concern about the billing practices in January 2015. The insurer said it then tried to reach out to the medical group multiple times in the next year over its billing practices.

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In a statement, Mednax's CEO Mark Ordan said the company is pleased with the news.

“We are pleased that CVS Aetna has voluntarily dismissed the lawsuit that it filed against us in 2018, putting this matter fully in the past,” said Ordan.

“Our core mission is to do what’s absolutely best for our patients: mothers and children at their most vulnerable times. CVS Aetna’s website speaks the same language about care, so we hope this can be a start of building a positive relationship for the sake of our patients," Ordan said.

We've reached out to CVS Health and will update this story when we hear back.