Investigation and pending class action against Travelers Insurance for Traveler's long standing treatment of certain medical providers.
According to the class action lawsuit, Travelers has engaged in a silent Preferred Provider Organization scheme. In a PPO, insurance companies provide financial incentives to encourage patients to seek treatment from the preferred or in-network providers. Financial incentives include, for example, reduced co-payments or greater benefit coverage for seeking treatment from preferred or in-network providers. A "silent PPO" occurs when an insurance company breaches its obligation to refer patients to medical providers but still take the discounts the medical providers' bills. As a result, the medical provider loses revenues without gaining patients, receiving nothing in exchange for the reduced bills.
Name (Stock Symbol)
Travelers Companies, Inc., The (TRV)
The Travelers Companies, Inc., a holding company, provides various commercial and personal property and casualty insurance products and services to businesses, government units, associations, and individuals primarily in the United States.
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