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Court Snuffs 'Silent PPO' Class Action V. Travelers

Law360 (April 2, 2009, 12:00 AM EDT) -- A federal judge has put the kibosh on a putative class action alleging Travelers Indemnity Co. improperly pays health care providers reduced rates and pockets the difference.

Judge J. Phil Gilbert of the U.S. District Court for the Southern District of Illinois dismissed with prejudice allegations that Travelers inappropriately claims preferred provider organization status and is unjustly enriched by paying health care providers less than their customary rate.

While the lawsuit claims Travelers is unjustly enriched by paying discounted PPO rates it is not entitled to,...
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