HMO CLASS ACTION

The national consumer law firm of Herman, Middleton, Casey & Kitchens has filed a class action against Humana Inc., Humana Insurance Co., and Humana Medical Plans pursuant to the Federal Racketeering Influence and Corrupt Organization Act. The suit alleges that Humana generated profits at their members’ expense through undisclosed discounts and incentives with doctors, hospitals and other medical providers, as well as other breaches of contract. Also, the complaint asserts that Humana entered into agreements with medical providers that had “gag clauses” prohibiting medical providers from informing patients about alternative medical treatment.