Indicating that it did not have a proper say in the merger of Health Net and UnitedHealth Group, a group of Connecticut physicians has filed a suit to block the deal.

The Connecticut State Medical Society (CSMS), together with two member physicians in their individual capacity, have filed suit in a New Britain (Conn.) Superior Court against the Connecticut Department of Insurance, which affirmed the deal Dec. 1, 2009. The suit seeks to overturn regulators’ approval of the deal, arguing physicians were denied “intervenor” status at a hearing, allowing for cross-examinations of witnesses and other rights, the group said.

Regulators in Connecticut, New Jersey and New York each approved the Health Net-UnitedHealth Group merger and UnitedHealth Group’s rights to renew membership of Health Net’s northeast business subsidiaries, which serve 578,000 people in the three states.

Doctors Kathleen A. LaVorgna of Norfolk, Conn., and Michael M. Deren of New London, Conn., and the CSMS allege in their suit, among other things, a lack of independent investigation by regulators to verify claims made by UnitedHealth Group, failure to fairly weigh testimony and evidence provided in the case, and bias in favor of the defendants at a public hearing, held Nov. 23, 2009.

“CSMS has pursued this course of action because the physicians of Connecticut, together with their patients, were not adequately served by the DOI review process,” said CSMS Executive Vice President Matthew C. Katz, in a statement. “We believe further due diligence is necessary.”

Impact of merger not fully vetted

CSMS said its filing points out “inconsistencies and factual misrepresentations” by UnitedHealth Group witnesses at the public hearing regarding the medical landscape of the state that were never investigated or verified by state insurance regulators prior to approving the merger.

The group also alleges that hundreds of pages of evidence, provided by CSMS, the American Medical Association, the Physicians Advocacy Institute and the Connecticut Health Policy Project were “unlikely to have been read,” let alone given the required “weight of legal argument” by the state’s department of insurance.

“The Department of Insurance needs to consider the ramifications of its decision on the patients of Connecticut, not just on the insurers doing business in Connecticut,” said CSMS President LaVorgna, a general surgeon. “I believe that the DOI did not consider the impact of this acquisition on physicians or their patients.”

In a statement to IFAwebnews.com, UnitedHealth Group called its merger “a good transaction, because it broadens choice and access to quality care for Connecticut residents.

“We will ensure a smooth transition process for customers, as well as for physicians, hospitals and other health care professionals, many of whom are already in UnitedHealthcare‘s network,” officials for the Minnesota-based provider said in the statement.