About the Physicians Advocacy Institute

About the PAI

The Physicians Advocacy Institute, Inc., (PAI) is a not-for-profit 501(c) (6) advocacy organization established in 2006 with funds from the Multi-District Litigation (MDL) class action settlements against major national for-profit health insurers. The PAI's primary mission is two-fold: to guarantee compliance with the settlements by these health insurers; and to develop projects and tools for the future that guarantee the viability of physicians' medical practices and the ability of physicians to deliver quality patient care. Specifically, the final settlement between plaintiffs and the Prudential Insurance Company of America indicates that settlement funds will be used "to address issues relating to abuses of managed care," through assuring compliance and "identifying and addressing future health plan practices that burden the ability of Class Members to be paid fairly for their services."

The class action lawsuit known as Managed Care Litigation (MDL No. 1334) was originally filed in 2000 and was a combination of several cases filed around the country on behalf of physicians against for-profit health insurance companies. The basic allegations were that these health insurance companies, among other complaints, systematically denied, delayed and/or reduced payment to physicians who had delivered services to covered patients. Seven settlements with national health insurers have been reached to date: Aetna; CIGNA; Prudential; Anthem/WellPoint; HealthNet; and Humana. On April 27, 2007, several Blue Cross Blue Shield plans and plaintiffs announced settlements.

While the settlements have resulted in retrospective relief to physicians, the real value of the settlements for physicians was the prospective relief provided. The settlements offered protection to physicians (class members) going forward, including a compliance dispute procedure and a billing dispute procedure, which allowed physicians to have a process for resolving disputes with the defendant health insurers over issues such as downcoding, bundling, refusal to recognize modifiers, prompt payment, and a number of other protections.

The plaintiff state and county medical associations wanted to continue the momentum to restore fairness in managed care business practices gained through the lawsuits and resulting settlements, and the Physicians Advocacy Institute, Inc., was formed. The PAI believes it is imperative that health insurers continue to voluntarily adhere to the terms of the settlements to which they agreed, even though the settlements have expired. To continue liaison activities with health insurers, the PAI has a Physician Advocacy Liaison Committee comprised of the General Counsels of the PAI Board-member states.

The PAI intends to undertake specific projects to educate physicians about various managed care initiatives to enable physicians to be better informed and to understand how various health plan initiatives, like pay for performance and “rating” of physicians, will impact the day-to-day care that physicians provide their patients. PAI intends to be an advocate for physicians in all areas of health insurers’ managed care business practices so physicians and state and county medical associations are prepared to respond in knowledgeable, timely and appropriate ways. In this spirit, the PAI has developed MDEdgeTM, a health claims data warehouse that will allow physicians to determine if their claims for payment have been paid accurately by health insurers. For more information about MDEdge and how to enroll, please visit www.MDEdge.com.

For more information, go to the PAI website at physiciansadvocacyinstitute.org or contact Kelly Kenney, PAI Executive Vice President, at K2strategiesllc@gmail.com.

Physicians Advocacy Institute Board of Directors

The PAI is governed by a Board of Directors comprised of the executives of the following plaintiff state medical associations:

Robert W. Seligson, MBA, MA
Executive Vice President/CEO
North Carolina Medical Society

Vice President
Sandy Johnson
Executive Vice President Emeritus
Nebraska Medical Association

Donald Alexander
Retired Chief Executive Officer
Tennessee Medical Association

Louis J. Goodman, PhD, CAE
Executive Vice President/CEO
Texas Medical Association

Todd Atwater, JD
Chief Executive Officer
South Carolina Medical Association

Dustin Corcoran
Chief Executive Officer
California Medical Association

Matthew Katz
Executive Vice President & Chief Executive Officer
Connecticut State Medical Society

Donald Palmisano, Jr., JD
Executive Director/CEO
Medical Association of Georgia

Philip Schuh, CPA
Executive Vice President
Medical Society of the State of New York

Charles B. Shane, MD
Louisville, Kentucky
Lead Physician Plaintiff

Physician Advocacy Liaison Committee (PALC)

Donald P. "Rocky" Wilcox, JD
General Counsel
Texas Medical Association

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