Humana HMO Pays $40 million settlement

By Cecilia Green

Published on October 18, 2005

In a long-going case involving hundreds of thousands of active and retired doctors and Humana, Inc., a settlement agreement was made. Humana has agreed to pay $40 million to doctors who were allegedly underpaid by the HMO. Humana also agreed to pay $18 million in legal fees if U.S. District Judge Federico Moreno approves the settlement.

In the lawsuit brought forth by doctors six years ago, several health maintenance organizations, such as Humana, were accused of programming their computers to underpay doctors for their services.

Other settlements have already been made over the years between doctors and HMOs including Health Net and Prudential.

United Healthcare, Coventry, and PacifiCare have not yet made settlement arrangements, and will go to trial in January if no settlement has been made.

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