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Medical society files for injunction in alleged insurance overpayments

Patient Financial Services Weekly Advisor, December 3, 2004

The Medical Society of New Jersey said it is seeking court action to prevent an insurance company from recouping $15 million in alleged overpayments to physicians, the Associated Press (AP) reported November 29.

The society is seeking an injunction against Horizon Blue Cross/Blue Shield, which claims that over two years it overpaid more than 600 physicians who performed heart procedures. The insurer asked the physicians to refund the money by November 30.

"Our obligation is to confront and stop this abuse of physicians and the healthcare system," S. Manzoor Abidi, president of the medical society, said in a statement.

Horizon has said the overpayments were the result of a computer error, AP reported.

Company spokesman Thomas Rubino said the physicians are not entitled to the overpayments, comparing it to employees who erroneously receive too much in their paychecks; they are not entitled to the extra money.

"At a time when healthcare costs continue to rise, costly litigation over this issue does nothing to reduce healthcare costs," Rubino said in a statement.

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