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Judge Gives Go-Ahead to Suits Against HMOs

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Bloomberg News

A federal judge in Miami let lawsuits go forward that accuse Aetna Inc., Cigna Corp., Humana Inc. and other health insurers of limiting medical care in order to boost profit, though he dismissed some claims for now.

U.S. District Judge Federico Moreno threw out parts of the patient suits, yet allowed the plaintiffs to resubmit their major claims. The judge also set a July 24 hearing on whether the suits qualify for class-action status.

The split decision was a victory for health plans, said David Carter, a spokesman for Aetna, the largest health insurer.

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“While we haven’t seen the order at this point, we believe that these cases have no merit,” Carter said. “And to the extent that the court has recognized that at this very early stage of the litigation, we are pleased.”

Cigna spokesman Wendell Potter said the health insurer also was pleased by the ruling.

The suits accuse the HMOs of violating racketeering laws and a law regulating health and retirement benefits.

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