“Strawn vs. Farmers”
I have stayed in contact with the Class Action Lawsuit representative for the “Strawn vs. Farmers” lawsuit that was filed many years ago. I thought I would give you a brief update with regards to that lawsuit. The lawsuit filed was regarding reductions taken by Farmers Insurance on PIP claims that were taken from January 26, 1998 through July 31, 1999 (the class period). Farmers reduced payment of amounts billed by medical providers that they say has a CPT code that exceeded the 80th and then later the 90th percentile when a bill was compared to other bills in the defendant’s (Farmers Insurance) database. These reductions were noted in the “Reductions” portion of the EOB with a “Reason code” 40 or B2. The class action lawsuit was won and the Class Fund currently consists of a Limited Judgment of $9,5000,000 (the patient portion) entered on March 23, 2004 in favor of the class members following a jury verdict awarding “compensatory damages” of $757,163.17 (the providers portion) with prejudgment interest of $742,836.83 and punitive damages of $8,000,000 (also for the patient’s). Of course there have been numerous appeals – but my understanding is that has only been for the patient’s side and the punitive damages not for the actual compensatory side (for the doc’s). Interest has been accruing at 9% since that judgment date. You had to have completed the earlier paperwork (years ago) to have been included in this class action lawsuit. If you have done that paperwork your money is still not lost. According to my recent conversation with the attorney handling – he is finally seeing the light at the end of this long-long tunnel. Unfortunately, the “compensatory” side is held up until the “punitive” damage side has finally exhausted all appeals which he believes should be in the next 6-12 months.
I have been asked to help the attorney (our side’s rep) update his info on the list of names he has for chiropractors in Oregon that have an award amount due them. He has forwarded me his complete list. I will be assisting him in those names of OCA members that are on that list – updates to non-member information will not be provided by this office.
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