Attorneys to ask Stack for initial approval in chiropractor's AIG class action settlement TuesdayPublished: 2009-08-19 13:51:52Author: Amelia Flood | Madison Record | July 28, 2009Madison 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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