Attorneys to ask Stack for initial approval in chiropractor's AIG class action settlement Tuesday

Published: 2009-08-19 13:51:52
Author: Amelia Flood | Madison Record | July 28, 2009

Madison County Circuit Judge Daniel Stack will be asked to grant preliminary approval to the settlement of a class action suit over improper Preferred Provider Organization (PPO) discounts Tuesday.

Glen Carbon Chiropractor Richard Coy is again a lead plaintiff in the suit against insurer AIG and the National Union Fire Insurance of Pittsburgh. Coy is also one of the lead plaintiffs in a similar PPO claims class actions suit against First Health Insurance Company. The settlement in that case is disputed and a third fairness hearing is set for August.

Stack is presiding over both the cases.

The suit to be heard Tuesday at 1:30 p.m. pits Coy and fellow plaintiffs, Coy Chiropractic Health Center Inc. and Pointe East Physical Rehab, against AIG Claims Services Inc., AIG Marketing as well as National Union over what Coy claims were numerous PPO discounts to which the insurers weren't entitled to.

Coy is suing as class representative on behalf of other healthcare providers.

According to Coy's first amended complaint, Coy and the class were denied the proper reimbursement from claims filed on behalf of patients with AIG property and casualty polices like worker's compensations polices, automobile coverage and other areas.

He alleges that AIG and National Union used improper managed care tactics to reduce the reimbursements.

His suit names grounds of unjust enrichment, the violation of the Illinois Consumer Fraud and Deceptive Business Practices Act, civil conspiracy and breach of contract.

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