PacifiCare Health Systems, Cypress, Calif., will pay $4.25 million in fines and fees to Texas agencies under an agreement to settle allegations that it failed to pay providers in the state. The HMO did not admit wrongdoing. The state agreed to put pending litigation on hold for up to 12 months while PacifiCare complies with terms, including resolving claims of physicians who contracted through medical groups that have declared bankruptcy. The Texas attorney general's office said physicians will collect "millions of dollars" as a result. The Texas Medical Association supported the agreement. PacifiCare said the agreement would not affect its earnings. -- by Mary Chris Jaklevic
PacifiCare to pay fine, settle Texas docs' claims
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