AMA takes no sides in CIGNA lawsuit settlement plan

Neutrality is a necessity, the Association says.

By Bonnie Booth, amednews staff. Jan. 6, 2003.

New Orleans -- The AMA removed itself from the debate swirling around competing federal lawsuits against managed care companies, voting to take no position on a recent settlement reached in a class-action lawsuit in federal court in Illinois.

"The American Medical Association today stated that it unequivocally has taken no position in regard to the recent case entitled Kaiser v. CIGNA et al. or in regard to the settlement agreement in that case," the AMA said in a statement released during the Association's Interim Meeting here last month.

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Delegates voted to make it clearly known the Association would take no position on the case after delegates from several states involved in competing lawsuits against CIGNA and several other big managed care firms said support for the CIGNA settlement could undermine their lawsuits, which are moving through federal court in Miami.

"When the CMA entered into the lawsuit, we did so to create a fundamental change in the relationship between physicians and managed care," said Jack Lewin, MD, CEO of the California Medical Assn. "This settlement agreement doesn't come close to the disclosure needed for that relationship. It doesn't change behavior and it doesn't provide the accountability needed for a new relationship. ... It really does put the threat of a ceiling out there."

The call for neutrality followed complaints by delegates that an original AMA statement on the settlement was roundly interpreted as voicing support for the agreement.

"The statement from the AMA seems reasonable," said Troy M. Tippett, MD, a Florida neurosurgeon. "But it has been misrepresented and it jeopardizes the RICO suit."

AMA Trustee Timothy Flaherty, MD, said the original AMA statement was meant to salute the courage of Timothy Kaiser, MD, for pursuing the lawsuit against CIGNA, not endorse the settlement.