HUMANA: Supreme Court Hears Nevada RICO Fraud Case
The Supreme Court heard a case Monday that may "determine whether patients can sue their insurance compan[ies] under the federal anti-racketeering law," the Las Vegas Review- Journal reports. Humana Inc. vs. Forsyth is a countersuit challenging Nevada's largest class action suit, filed in 1989 on behalf of Nevada patients who alleged that Humana Inc. "secretly negotiated an 89% discount with its hospital, Humana Hospital Sunrise in Las Vegas, but did not pass the savings onto its customers." James Colbert, attorney for Humana, urged the court to dismiss the class action suit on grounds that the federal Racketeer Influenced and Corrupt Organizations Act (RICO) "impairs state law" by tripling damages enacted by the Nevada Legislature. The Review- Journal reports that if the court "rules for Humana Inc. ... the patients' $1.6 million award in [the class action suit] could be in jeopardy" (Ratcliffe, 12/1).This is part of the California Healthline Daily Edition, a summary of health policy coverage from major news organizations. Sign up for an email subscription.