Santa Clara, CA: Oxford Health Plans Inc. has reached a preliminary $3 million settlement in a bad faith insurance class action lawsuit brought against the insurer by 20,000 doctors alleging the company failed to pay claims in a timely or proper fashion.
According to the terms of the tentative agreement, each class member will receive between $170 and $1,700 from a $1.38 million. Additionally, class representative, physician John Ivan Sutter, will receive a $25,000 incentive fee.
According to the suit, Sutter, a pediatrician, alleged Oxford failed to provide him and other New Jersey-based physicians with full and prompt payment, in violation of their agreements and various state laws.
The case is John Ivan Sutter MD, PA v. Oxford Health Plans Inc., case number L-6644-02, in the Superior Court of New Jersey in Essex County.