DOCTORS FIGHT HMO MERGER.

Byline: Lindsey Tanner Associated Press 

In the latest chapter of its thorny relationship with Aetna Inc., the American Medical Association is fighting the insurance giant's proposed purchase of Prudential Insurance Co.'s health-care business, saying the deal would severely limit patients' freedom to choose a health plan.

The $1 billion deal, if approved by state and federal regulators, would put 9.7 million members under the Aetna umbrella, making it the nation's largest health maintenance organization.

It's the first time the nation's largest group of doctors has written a letter to the U.S. Justice Department seeking to challenge a proposed health-care merger.

The AMA has been highly critical of Aetna during the past year as it fights the encroaching power of managed care. Its complaints have included claims that Aetna's contracts don't allow doctors to appeal when a plan denies recommended treatment and violate confidentiality by giving the plan co-ownership of patient records.

Aetna spokeswoman Joyce Oberdorf said the company is disappointed at the AMA's opposition to the deal, but said Aetna officials vigorously disagree with the AMA's claim that Aetna has engaged in managed care abuses.