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Issue: 2006-10-16 Horizon, Doctors Settle Four-Year Dispute♦ New Jersey NEWARK, N.J., October 16 – An agreement between doctors and Horizon Blue Cross/Blue Shield was announced, ending a four-year battle over late and reduced payments. According to a joint statement issued by the doctors and Horizon, the HMO agreed to continue significant business practice improvements, including no reduction of fees for participating physicians more than once a year. Horizon and three other health insurers were sued in a class action involving 40,000 New Jersey doctors who alleged they were underpaid for their services. Also sued were: Cigna Healthcare of New Jersey; United HealthCare of New Jersey; Oxford Health Plans Inc. of Trumbull, Conn. Under the agreement, the doctors will not receive any money and Horizon would pay attorneys fees charged in the court dispute dating back to 2002. The agreement awaits approval by a judge. Thomas Rubino, Horizon spokesman said the company did not admit any wrongdoing in agreeing to the settlement. Horizon insures 3.2 million people in the state and is New Jersey's largest health insurance company. Under the terms, Horizon agreed to give 90 days notice, to physicians, of changes in its contracts, policies, and procedures; allow primary care physicians to close their practices to new patients covered by Horizon; and for Horizon to recover overpayments to physicians more than 18 months after the original payment. |
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