State Farm Facing Class Action Over Lowball Payouts

Law360, New York (November 16, 2009, 2:25 PM EST) -- Florida health care providers have asked a federal judge to certify a class of plaintiffs in their lawsuit accusing State Farm Mutual Automobile Insurance Co. of improperly using a Medicare capping schedule to shortchange doctors on reimbursements for magnetic resonance imaging.

The motion, filed Nov. 13 in the U.S. District Court for the Southern District of Florida, claims the case mirrors a similar class action adjudicated in state court in which State Farm had supported class certification to facilitate a settlement. While the instant case is...
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