Press Release

 For Immediate Release

Sept. 4, 2003

VERMONT MEDICAL STUDENTS TO BENEFIT FROM CIGNA SETTLEMENT

MONTPELIER -- Medical students enrolled at the University of Vermont College of Medicine will receive grants from a new foundation being set up by the Vermont Medical Society in response to the settlement of a class-action lawsuit brought by physicians and medical societies nationwide against CIGNA insurance.

Vermont physicians will be able to direct their settlement payments to provide seed money for the Vermont Medical Society Education Foundation. The nonprofit charitable organization will support educational programs for both health care professionals and Vermont citizens. The foundation will also provide financial assistance to deserving medical students enrolled at the University of Vermont College of Medicine. The grants will help excellent candidates pursue a career in medicine and provide motivation for graduates to practice in Vermont.

The Vermont Medical Society participated in the lawsuit against CIGNA, as a result of a membership survey that found numerous instances of CIGNA not responding to written appeals, delaying processing of claims, and frequently paying claims late. Under the settlement, CIGNA has agreed to changes in its business practices, including using a set of coding rules which comply with nationally-recognized standards, paying physicians in a timely fashion, creating an independent external billing dispute process, and establishing an external medical necessity review process.

Carolyn Taylor-Olson, M.D., acting president of the Vermont Medical Society, said "the commitments made by CIGNA in the settlement acknowledge a difficult business environment for physicians that simultaneously expects high quality and commitment from physicians while undervaluing the excellent service that physicians provide."

The settlement allows physicians to either recover money owed for past claims or elect to receive their pro rata share of a $30 million fund established by CIGNA. If a physician chooses, his or her share of the settlement funds can be directed to a foundation established by a state medical society, such as the new Vermont Medical Society Education Foundation. Initial estimates are that about 1,700 Vermont doctors could collectively receive between $50,000 and $100,000 from the CIGNA fund.

John N. Evans, Ph.D., acting dean of the University of Vermont College of Medicine, praised the Vermont Medical Society for setting up a foundation to help medical students. The new foundation’s grants will complement scholarships offered by the Freeman Medical Scholars Program to physicians considering practicing in an underserved area of Vermont. "We are learning from the Freeman Medical Scholars Program that support of medical students to reduce their extremely high educational debt results in significant improvement in access to needed care in rural and underserved areas in Vermont," said Evans.

The Vermont Medical Society Education Foundation will also accept bequests from Vermont Medical Society members and other Vermonters designated for health education and research purposes.

For more information, contact the Vermont Medical Society at 802-223-7898 or toll free within Vermont at 800-640-8767. Contributions to the Vermont Medical Society Education Foundation can be sent to the Vermont Medical Society, P.O. Box 1457, Montpelier, VT 05601.

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