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Article: Judge Throws Out Class-Action Lawsuit against North Texas HMOs.
- Article from:
- Knight Ridder/Tribune Business News
- Article date:
- August 25, 1998
- Author:
CopyrightCOPYRIGHT 1998 Knight-Ridder/Tribune Business News. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan. All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)
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Knight Ridder/Tribune Business News
Aug. 25--A federal judge in Fort Worth ruled Monday that five local HMOs don't have to tell members that their doctors may receive financial bonuses for cutting costs.
U.S. District Judge Terry Means dismissed a class-action lawsuit filed by several enrollees against the North Texas health maintenance organizations. He said a 1974 federal law does not require health plans to disclose compensation arrangements with physicians.
Named in the lawsuit were Kaiser Permanente, Prudential HealthCare, Aetna U.S. Healthcare, NYLCare Health Plan and Cigna Healthcare.
"We feel the court correctly interpreted the law," ...