Hearing continued in proposed Coy-AIG settlement

Amelia Flood Jul. 28, 2009, 11:41am


A hearing to ask Madison County Circuit Judge Daniel Stack to give the initial go ahead to the settlement of a class action suit over improper Preferred Provider Organization (PPO) discounts has been continued to August.

According to the court docket, the hearing was moved to Aug. 10 at 1:30 p.m.

Stack was to hear arguments in favor of a settlement in the case of Dr. Richard Coy against the insurer over what he claims were improper reductions in the reimbursement he and other health care providers were entitled to.

The Glen Carbon chiropractor's case is similar to another PPO class action filed against First Health Insurance Company that is currently in settlement limbo.

Stack is also presiding over that case as well. Tuesday's hearing was originally scheduled to begin at 1:30 p.m.

In the AIG case, Coy contends that AIG and National Union Fire Insurance of Pittsburgh wrongfully took PPO discounts on workers' compensations claims and other claims. The discounts, he and fellow lead plaintiffs Coy Chiropractic Health Center Inc. and East Pointe Physical Rehab allege, deprived class members of monies due.

The suit asks for multiple counts of damages not to exceed $75,000 per individual, costs and attorneys' fees.

Coy has sued on the grounds of unjust enrichment, the violation of the Illinois Consumer Fraud and Deceptive Business Practices Act, civil conspiracy and breach of contract.

Coy is represented by Jeffrey Millar of Wood River and Timothy Campbell of Godfrey. AIG and National Union are represented by Robert Schultz.

The case is Madison case number 05-L-150.

More News