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U.S. District Court Judge Federico Moreno recently signed off on two
settlements reached by Health Net and Prudential Financial Services,
two of the managed care companies involved in the massive class-action
lawsuit by thousands of physicians. This brings the number of settlements
approved by Moreno to four in the class-action lawsuit against 10 of the
nation's largest HMOs. This settlement provides that Health Net will pay
$40 million to active and retired doctors, and will spend an estimated
$80 million to improve the process of dealing with doctors' claims submissions.
Prudential will pay $22.2 million for managed care improvements. Health Net
will pay $20 million in doctors' attorney fees, and Prudential will pay $5 million.
WellPoint Health Networks and Anthem also have reached tentative settlements. The
trial is scheduled in January 2006 for the four remaining managed care companies --
Coventry, United Healthcare, Humana and PacifiCare -- but negotiations to reach
settlements are ongoing, and more settlements are expected before the trial date.
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