Article: Judge Throws Out Class-Action Lawsuit against North Texas HMOs.

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," ...

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