LAS VEGAS – As more of the agreements signed by several large insurers to settle a class action suit alleging inappropriate billing practices expire, the possibility is increasing that the companies will return to the same behavior, especially given that many are being accused of violating the terms already, reported a compliance expert at an emergency medicine meeting.
Several of the health plans have said they will continue to comply with the terms of their settlements once they expire, but “not all have said that,” said Edward R. Gaines III, vice president and chief compliance officer for Healthcare Business Resources in Durham, N.C., who spoke at a meeting on reimbursement sponsored by the American College of Emergency Physicians.
Mr. Gaines said noncompliance among all the plans that have settled has continued to be an issue, which is being dealt with in the courts and administratively. But “the problem is, once the settlement agreement expires, I can't go back into federal court through an easy process to make my complaint heard,” he said.
The settlements were struck in response to Multidistrict Litigation 1334, which was certified as a class action in U.S. District Court for the Southern District of Florida in 2002 and named Aetna Inc., Anthem Insurance Cos. Inc., Cigna, Coventry Health Care Inc., Health Net Inc., Humana Inc., PacifiCare Health Systems Inc., Prudential Insurance Co. of America, United Health Care, and WellPoint Health Networks Inc. as defendants. The suits alleged that the insurers violated the federal Racketeer Influenced and Corrupt Organizations Act by engaging in fraud and extortion in a common scheme to wrongfully deny payment to physicians.
Several state and county medical societies filed the suits on behalf of virtually every physician in the nation–about 900,000 doctors.
United Healthcare and Coventry both were summarily released from litigation. Their release has been upheld on appeal.
Aetna and Cigna struck agreements that entailed an immediate payout in response to claims filed by physicians, some changes in billing behavior, and an agreement to provide prospective relief–$300 million from Aetna and $400 million from Cigna.
Cigna's 4-year agreement has now expired, and Aetna's 4-year agreement expired in June 2007; but Aetna's agreement was extended through June 2008 because of compliance disputes. After an investigation, the New Jersey insurance department fined Aetna $9.5 million in June 2007 for failing to properly pay for out-of-network providers. The insurer is paying nonparticipating physicians only 125% of Medicare rates and informing patients that they are not responsible for the difference.
ACEP, the North Carolina chapter of ACEP, Wake Emergency Physicians, and the North Carolina Medical Society subsequently followed up with a complaint to the North Carolina insurance department in November, Mr. Gaines said. The North Carolina group is challenging bundling of 12-lead ECGs into evaluation and management codes, and bundling of other procedures using the CPT-25 modifier codes.
“If we don't get prompt action from Aetna, we're going back to court [to] ask for an extension of the settlement agreement term,” he said.
The American Medical Association and Aetna recently said they are working together to resolve outstanding complaints. Prudential's agreement expires in 2009; agreements with HealthNet, Anthem/WellPoint, and Humana expire in 2010.
Agreements were reached with 90% of the nation's Blue Cross and Blue Shield plans and the Blue Cross and Blue Shield Association last April, but the final settlement date was being worked out at press time. The Blues plans agreed to similar terms as did the other payers, with one exception: Anthem/WellPoint and the Blues plans refused to accept assignment of benefits. The Blues plans were willing to walk away from the settlement if they did not win that concession, said Mr. Gaines.
The court gave preliminary approval last November to a settlement with the West Virginia-based Highmark/Mountain State Blue Cross Blue Shield. Claims could still be filed through February 2008. The final settlement date was also to be decided in February.
Mr. Gaines urged physicians to hold the health plans accountable to their agreements. Information on settlement terms and how to dispute claims can be found at www.hmosettlements.com