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Re: Horizon BCBS Lawsuit

In a message dated 8/2/04 4:00:03 PM,  writes:

<< The largest class numbers over 40,000 and seeks monetary damages for
Horizon's consistent failure to pay claims timely as well as the
insurer's failure to pay appropriate interest on late paid claims in
violation of the New Jersey prompt payment statutes (the "Prompt Pay
Claim Class").  In reaching its holding, the Court took note of the
"unrebutted" New Jersey Department of Banking and Insurance Market
Conduct Report which had examined Horizon's claims processing during
2000-2001 only and yet, observed the Court, found "fairly extensive
prompt pay violations" over that time period. >>

I admit I am no legal expert and I don't know the important facts of the
case. But class action lawsuits are getting a bad name. More and more it seems to
me, class action lawsuits are a way principally to enrich the lawyers who
bring them on behalf of the plaintiff class. They are a way of strong-arming the
defendant and forcing them to their knees by intimidating them (with the threat
of extremely expensive legal proceedings) into a settlement before the merits
of the case can be heard (both sides' arguments) and decided by a court.
Although the settlement could run into millions, typically by the time legal fees
are paid and the plaintiff lawyers are paid their contingency fee, there is
very little left for individual members of the class. It's an incredible racket.

We all have a tendency to sympathize with the physicians in the certified
class. But the tactics being used are not that different from the ones plaintiff
attorneys make in malpractice actions to force settlements, when it is not
clear and far from proven, whether anyone has even committed malpractice. We all
hate those settlements.  So since that type of lawyering is so offensive to us
as potential defendantss, it seems hypocritical to embrace the same approach
as plaintiffs. The lawyers all know how to play that note of moral outrage.
Why not, it helps them become multimillionaires.

After all, the proposed class action suit is a civil action. Not much was
elaborated about what the state insurance commission was going to do in the way
of fining or punishing the insurance company or whether the physicians would
get payment with interest, etc. So--at the risk of offending many people on this
list, I question whether a class action lawsuit is the appropriate way to
solve this problem. There are regulations and regulatory agencies for problems
like this.

Stephanie Walker, RN, FNP