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N.J. Medical Society Goes to Court To Block Recoupment of $15M in Alleged Overpayments

November 30, 2004

The Medical Society of New Jersey is seeking court action to prevent an insurance company from recouping $15 million in alleged overpayments to doctors.

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

“Our obligation is to confront and stop this abuse of physicians and the health care 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.

The company said the medical society’s action “will only benefit trial lawyers.”

Company spokesman Thomas Rubino said the doctors are not entitled to the overpayments, just as employees who erroneously receive too much in their paychecks are not entitled to that money.

“At a time when health care costs continue to rise, costly litigation over this issue does nothing to reduce health care costs,” Rubino said in a statement.

Copyright 2004 Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

Topics New Jersey

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Latest Comments

  • December 2, 2004 at 8:43 am
    M says:
    I agree with you but your math is wrong 15 million divided by 600 is actually 25,000 still a fair amount of money but no where near 2.5 million.
  • December 2, 2004 at 8:43 am
    M says:
    I agree with you but your math is wrong 15 million divided by 600 is actually 25,000 still a fair amount of money but no where near 2.5 million.
  • December 2, 2004 at 7:23 am
    Accountable in my Industry says:
    Why did the doctors assume it was acceptable to keep an overpayment? If I receive an overpayment from an insured, I am required by law to give it back to my client. Why is i... read more

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