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Court Ruling On Pending Class Act Suit Against 7 Managed Care Insurance Companies Is Available On The Web

By Staff Writer

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NU Online News Service, June 15, 9:47 a.m. – The full text of a June 12 court ruling, which dismissed certain claims in a group of more than 50 lawsuits accusing seven managed care insurance companies of fraudulently limiting medical care, is now available on the court’s Web site, http://www.netside.net/usdcfls/publications/00md1334d1259.pdf.

The ruling is seen as a partial victory for the HMO industry because in addition to its dismissal of some of the plaintiffs’ allegations, the court concluded that the plaintiffs failed to show that they had exhausted all administrative means to solve the disputes or that seeking such solutions would be futile. However, the court gave until June 29 to the plaintiffs to amend their claims. A new hearing is scheduled for July 24 on whether the pending lawsuits can be grouped as class act.