Physicians appeal Health Net acquisition

The states largest physician organization has filed an appeal in Superior Court in New Britain

, seeking to overturn the state Insurance Departments recent approval of UnitedHealth Groups acquisition of Health Net of the Northeast, in Shelton.

The Connecticut State Medical Society, along with two individual members of the group who are doctors, filed a suit against the Insurance Department late Wednesday. They claim the department favored the insurance companies when making its decision and did not adequately consider testimony given by physicians regarding the acquisition.

The two CSMS members who filed the suit as individuals along with the organization are Drs. Kathleen LaVorgna of Norwalk and Michael M. Deren of New London.

CSMS has pursued this course of action because the physicians of Connecticut, together with their patients, were not adequately served by the (departments) review process, said Matthew Katz, executive director of the medical society. We believe further due diligence is necessary.

The Insurance Department approved the acquisition Dec. 1, following a Nov. 23 public hearing at which, according to CSMS, the medical society and physicians were denied intervenor status that would have allowed for cross-examination of witnesses and other rights.

We dont think they adequately weighed the evidence before them, Katz said.

Dawn McDaniel, a spokeswoman for the Insurance Department said, Our lawyers are in the process of reviewing the lawsuit. We expect that the attorney general will represent us vigorously.

Among CSMS concerns, members feel the acquisition will limit consumers choice and may restrict access to coverage.

Also, they worry about the unique type of acquisition taking place, which lets UnitedHealth purchase the renewal rights to Health Net commercial customers, which CSMS says allows UnitedHealth to set new premiums without regulatory oversight and to avoid offering coverage to businesses whose employee medical claims may be higher than others.

Officials at UnitedHealth could not be reached for comment Thursday.

The physicians also claim that UnitedHealth witnesses at the public hearing gave inconsistent statements and misrepresented the medical landscape of the state, and the Insurance Department never verified or investigated those inconsistencies before approving the acquisition.

The group also feels that the department likely did not read hundreds of pages of evidence provided by CSMS, the American Medical Association, the Physicians Advocacy Institute and the Connecticut Health Policy Project.

Physicians appeal Health Net acquisition

By: Rick Lewis

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