CIGNA settlement heads to mediation

Cases against Aetna, Humana and other health plans similarly progress.

By Tanya Albert, AMNews staff. April 21, 2003.

Lawyers for CIGNA Corp., the physicians who sued the company in federal court, and Illinois and Texas doctors who originally sued CIGNA in state court, were scheduled to head to mediation at press time. The three parties planned to discuss a proposed settlement agreement that could influence how doctors nationwide are paid.

CIGNA and the Illinois and Texas physicians moved their nationwide class-action case to federal court in Illinois late last year and reached a settlement agreement that still needs final approval. But physicians and medical societies involved in the federal lawsuits against CIGNA and other managed care companies say the proposed settlement -- which could influence their nationwide class-action cases -- doesn't ensure that CIGNA will stop its current practices.

The mediation brings the sides together to try to work out differences, said Archie Lamb, co-lead counsel representing individual doctors and medical associations that are plaintiffs in the lawsuits moving through the federal court system. The mediation is scheduled for April 10, after press time.

CIGNA spokesman Wendell Potter said the company appreciates the mediator's help and at press time hoped that the session would be productive. "We would like to have the matter settled," he said.