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Health Net, Inc.
Shane v. Humana, et. al. (Underpayment to Providers for Services)
Date: 05/03/2005 (Date of Settlement)
Misconduct Type: Cost/Labor Mischarge
Enforcement Agency: Non-Governmental
Contracting Party: Non-Governmental
Court Type: Civil
Synopsis: On May 3, 2005, Health Net entered into an agreement settling the case Shane v. Humana, et. al. This action alleged that Health Net, among other defendants, "systematically underpaid providers for medical services to members, have delayed payments to providers, imposed unfair contracting terms on providers, and negotiated capitation payments inadequate to cover the costs of the health care services provided." As part of this settlement agreement, Health Net will pay $40 million to a general settlement fund and over $20 million for the plaintiffs' legal fees.