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Humana settles Tricare underpayment case with hospitals

NEWS IN BRIEF — Posted June 4, 2012

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Humana has settled a lawsuit brought by hundreds of hospitals against the health plan alleging that the company underpaid them for outpatient laboratory and radiology services. In a filing with the U.S. Securities and Exchange Commission on May 21, Humana disclosed that it will take a $45 million charge against its 2012 earnings in connection with the resolution of the case.

Hospitals, led by lead plaintiff, Pensacola, Fla.-based Sacred Heart Health System, filed the lawsuit in 2007, alleging that Humana Military, the health plan’s Tricare contractor, underpaid for care provided to Tricare recipients beginning in October 1999, in violation of contracts with the individual hospitals. Humana denied underpaying the hospitals.

Note: This item originally appeared at http://www.ama-assn.org/amednews/2012/06/04/bibf0604.htm.

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