Cigna Corp., Philadelphia, agreed to spend at least $540 million to settle its portion of a sweeping class-action lawsuit filed on behalf of 700,000 doctors alleging that the nation's largest health insurers routinely shortchanged the physicians for their services. Cigna has earmarked $70 million to pay previously disputed claims up to 12 years old, $55 million to cover attorneys' fees and $15 million to create a healthcare foundation. The nation's third-largest health insurer also will invest about $400 million to modify its claims-processing system and bill-paying practices. The agreement, subject to approval by U.S. District Judge Federico Moreno in Miami, follows a $470 million settlement reached by Aetna, Hartford, Conn., in May. The remaining defendants -- Anthem, Coventry Health Care, Health Net, Humana, PacifiCare Health Systems, UnitedHealth Group and WellPoint Health Networks -- are hoping to win an appeal in Atlanta next week challenging the case's class-action status. -- by Laura B. Benko
Cigna becomes second insurer to settle docs' suit
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