Louisiana Supreme Court Affirms Judgments Totaling $180 Million in Favor of Insurance Receivers for Texas, Louisiana and Oklahoma HMOs

DALLAS, Jun 15, 2011 (BUSINESS WIRE) -- Jean Johnson, the Special Deputy Receiver of AmCare Health Plans, Inc. of Texas, announced a substantial multi-million dollar recovery by three HMOs against their former parent company, Health Net, Inc. The years-long effort to recover money on behalf of Texas, Louisiana and Oklahoma health care providers and policyholders stems from the collapse of the AmCare HMOs in those three states in 2002.

The Louisiana Supreme Court issued its ruling in April 2011, in favor of the Special Deputy Receiver of AmCare Health Plans of Texas, Inc., acting under contract with Texas Insurance Commissioner Mike Geeslin as Receiver, Louisiana Insurance Commissioner Jim Donelon as liquidator of AmCare Health Plans of Louisiana, Inc., and Oklahoma Insurance Commissioner John D. Doak as receiver for AmCare Health Plans of Oklahoma, Inc.

The $180 million judgment against Health Net, Inc., a large California based health care provider, is in addition to approximately $14 million the Receivers had previously recovered from other defendants by way of settlements in 2005. The law firms of George & Brothers, LLP and Hohmann, Taube & Sommers, LLP of Austin, Texas; Wisener * Nunnally * Gold, LLP of Garland, Texas; the McKernan Law Firm, the Walters, Papillon, Thomas, Cullens, LLC law firm, and The Morgan Law Firm, of Baton Rouge, Louisiana; and Mr. Robert Arceneaux, assisted by Ms. Lizbeth Talbott, both of New Orleans, represented the three Receivers in litigation filed in Baton Rouge, Louisiana in 2004, and successfully tried by a Louisiana judge and jury in 2005.

After setbacks in the Louisiana Court of Appeals, the Receivers appealed to the Louisiana Supreme Court, and in April 2011, that Court unanimously affirmed awards to the three Receivers totaling, with interest, more than $180 million. On Tuesday, May 10, 2011, Health Net paid approximately $90 million of the judgment.

After the Louisiana Supreme Court denied a motion for reconsideration by Health Net, and United States Supreme Court Justice Antonin Scalia denied a stay of the judgment, Health Net, Inc. paid the remainder of the judgment on Friday, June 3, 2011.

As a result of this victory in the Louisiana courts, Ms. Johnson stated that she believes that the doctors, hospitals, and medical service providers who were harmed when the AmCare HMOs were unable to pay their bills will have their approved claims paid in full. Full recovery for these claimants in a case of this type is an unusually good result, of which Ms. Johnson and the other receivers and their lawyers are especially pleased.

For further information regarding this case, please contact Jim George, of George & Brothers, LLP, in Austin at 512-495-1400, or by email at rjgeorge@georgeandbrothers.com. SOURCE: George & Brothers, LLP George & Brothers, LLP Jim George, 512-495-1400 rjgeorge@georgeandbrothers.com

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