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AMA Hits Aetna, Cigna With Payment Fraud Suits

Law360 (February 10, 2009, 12:00 AM EST) -- Alleging that the insurers have systematically shorted both patients and physicians by using massaged cost data, a consortium of doctors led by the American Medical Association has filed putative class actions against Aetna Inc. and Cigna Corp. under antitrust and racketeering laws, as well as the Employee Retirement Income Security Act.

The organizations filed two suits Monday against the insurers in the U.S. District Court for the District of New Jersey, claiming that the companies have used manipulated cost data to establish chronically insufficient reimbursement rates...
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