March 14 Health insurer Aetna Inc said on Friday it would not go forward with a proposed $120 million settlement with healthcare providers and plan members regarding out-of-network reimbursement after claimants opted out of the suit and triggered a provision enabling it to cancel the deal.
Aetna, which had agreed to settle in December 2012, said in a filing with the U.S. Securities and Exchange Commission that it would not move forward with the final settlement.
The company did not disclose how many claimants had opted out of the settlement but said that providers and plan members who chose to opt out of the settlement exceeded a threshold that allowed Aetna to end the settlement.
The threshold was $20 million in value represented by the difference between charges providers billed for out-of-network services and the insurer's allowed amount that it agreed to pay on those services, the company said.
Aetna, which had set aside reserves for the settlement, said they would be added back into its results as earnings and accounted for as a special item.
Aetna spokeswoman Cynthia Michener said the company would resume its defense in court.