California appeals court rules against arbitration
California appeals court rules against arbitration
A California State Court of Appeals has ruled against CIGNA Healthcare of California in a case that looked at whether consumers should be required to seek arbitration rather than bring a case to trial when seeking restitution against a health plan, Knight Ridder Tribune Business News reports.
The case centered on whether allegations that CIGNA made misleading statements to encourage a Los Angeles woman to join its plan should be heard in court of before a panel of arbitrators. CIGNA, like many health plans, requires members to agree to arbitration rather than taking controversies to court.
The appellate court ruled that HMOs can't force Californians to sign away their right to a court trial in cases involving allegations of illegal business practices.
CIGNA issued a statement shortly after the ruling that it would appeal the case, Knight Ridder reports.
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