Coventry Health Care of Kansas to Pay $3.3 Million to Settle Copayment Class Suit

ST. LOUIS—Coventry Health Care of Kansas has agreed to pay $3.3 million to settle a class action lawsuit alleging that the health insurer charged excessive copayments to Missouri residents who were part of health maintenance organization plans it administered (Holling-Fry v. Coventry Health Care of Kansas).

The settlement is subject to approval by the court, which previously rejected a settlement proposed by the parties.

The lawsuit contended that Coventry violated Missouri regulations in charging a copayment on prescription medications that exceeded 50 percent of the cost of the medication at the point of service, and that the violation ...