GNYHA and Aetna Agree to Collaborative Process to Address Payment Issues

GNYHA and Aetna U.S. Healthcare have agreed to embark upon a collaborative process to resolve GNYHA members' myriad issues with respect to the payment and processing of claims by Aetna. The process was developed as the result of a recent meeting between GNYHA President Kenneth E. Raske and Aetna's Chairman and Chief Executive Officer, William Donaldson. GNYHA is hopeful that this commitment at the highest levels of Aetna will provide meaningful relief to GNYHA members. GNYHA and many of its hospital members were poised to bring class action litigation against Aetna to challenge Aetna's claims payment and processing practices. Cumulatively, Aetna's practices have resulted in significant inappropriate denials and delays in payments to GNYHA members and have caused GNYHA members to incur unnecessary administrative costs in order to gain payment for medically necessary services rendered. The tentative agreement anticipates that GNYHA will refrain from litigation while GNYHA and Aetna work in good faith to address past and present payment disputes and develop procedures to minimize the administrative burdens of processing and obtaining payment of claims. The agreement is dependent, however, on the development of a system designed to speed payments to providers so that they will not be prejudiced while Aetna works to address the problems that have been identified. GNYHA has begun to meet with Aetna to discuss member issues, both past and present, and will keep members apprised of developments. GNYHA's planned litigation against Aetna is part of its larger initiative to end abusive practices by managed care plans. This initiative includes pursuing legislative remedies, an advertising campaign to heighten public awareness of the abuses, and further litigation against other plans and payers.
 
 

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