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.

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