Humana Violates Class Action Lawsuit Checks When Sending Settlement Checks
Attorney Margie Waldrop recently filed a class action lawsuit against Humana Inc. and Humana Pharmacy Solutions for violating plaintiffs’ right to bring claims in federal court. The complaint contends that Humana systematically increases premiums on its HMOs and POS plans without providing any notice to its class of members. The complaint further contends that these hikes are illegal because Congress never intended for health insurance companies to discriminate against its members. The lawsuit is being represented by ADA attorney Jennifer Capra.
Attorneys representing the plaintiffs have been negotiating with Humana over several months in an effort to reach a settlement.
In early January, Humana informed the plaintiffs’ attorney that it would not pursue the claims in a Class Action Lawsuit against them as part of its settlement for a $1.75 million judgment in January 2021. At that time, the company said that it “does not believe” that it can prevail in both claims.
Humana’s decision to not pursue class action lawsuits against it’s former HMO clients comes as a surprise to many class action lawsuit experts.
Class action lawsuits allow multiple plaintiffs to join together in one lawsuit and resolve their disputes through a single lawyer. Class action lawsuits also allow each plaintiff to receive a fair trial date, jury selection process, and to resolve any other issues between the parties before the case goes to trial. A class action settlement allows both sides to settle their claims before going to trial, which eliminates the possibility of either party spending millions of dollars on a trial that may not go anywhere.
Humana has decided not to fight the charges against it. Instead, it will pay the claims of the Class Members who have been affected by Humana’s actions. In return, Humana must notify each individual Class Member of the terms of the settlement amount. The Class Members are expected to settle their claims prior to going to court. This will ensure that the Class Members’ rights to a fair trial are protected.
Humana has received permission to accept payment only from the Class Members who have filed personal lawsuits against Humana.
It has not received any request from the Class Members to accept settlements from Humana. Other companies have been hit with a similar demand by the Class Members who have filed lawsuits. Therefore, if Humana is guilty of attempting to defraud its Class Members, or if it has fraudulently attempted to pay a settlement amount that is too low, then other lawsuits filed against Humana could lead to huge financial troubles for the insurer. Therefore, accepting a Class Action Settlement against Humana would put the insurance company’s financial status at risk.
The settlement administrator, however, has the duty to ensure that the Class Representatives receive a fair and equitable settlement. The Class Representatives will receive a fixed sum, either in cash or as a percent of the total compensation that they would have gotten had they won the case. Therefore, Humana may be in violation of its obligations under the federal law by paying top class actions without providing an opportunity to the Class Representatives to receive an equivalent settlement. If Humana is found to be in such a violation, then it may be liable to pay the costs and expenses for filing the class action lawsuits. The insurer may also face the loss of the premium payments it receives from the Class Representatives.
Under the laws of the pharmaceutical industry, Humana cannot deduct premiums from employees’ accounts for the cost of filing a class action lawsuit.
Thus, it may be difficult for Humana to meet its obligations regarding prescription drugs. The regulations governing the amount of premium that can be charged to a Class Representative differ from state to state. Furthermore, Humana’s stock price may fall if it is found that some of its class action lawsuits have been improperly filed. If the company was guilty of charging premiums based on the wrong settlement value or of charging higher than allowed premiums based on the risk of a suit, Humana may be liable for monetary damages in the amount of the actual profits it receives from the sale of its products.
Humana’s insurance plan does not cover any claims that result from the filing of suits challenging the company’s policies and procedures, unless those lawsuits have been brought by a Class Representative on behalf of the class.
In such cases, Humana must pay for the costs that would have been paid by the plan if the lawsuit had been allowed to proceed. The lack of a Class Action Settlement Check ensures that Humana is not liable for costs or fees associated with improper Class Action Lawsuit Claims. If Humana fails to make the required payment for these fees, the company must reimburse them to the Class Representatives who have been awarded the lawsuit payments.