Blue Cross plans settle doctors’ lawsuit for $128 million
Saturday, April 28th, 2007
By Chris Fitzsimon
About 900,000 physicians nationwide had alleged unfair payment practices
Associated Press
A group of managed health care companies have reached a $128 million settlement in a class-action lawsuit filed by about 900,000 physicians over alleged unfair business practices that denied and delayed payments for medical care, both sides confirmed Friday.
Under the settlement, 23 Blue Cross and Blue Shield plans and the Blue Cross and Blue Shield Association will pay the money to a fund. The physicians can make a claim or select a charity to receive the money.
Blue Cross and Blue Shield of North Carolina will contribute more than $6 million toward the settlement.
Collectively, the plans also will pay legal fees determined by the courts up to $49 million, said Michael Pope, a spokesman for the companies.
Pope said that plans will pay a percentage based on their size.
"The Blue Cross plans have always worked well with their physicians," Pope said.
In May 2003, the physicians filed a lawsuit in Miami against the companies. They contended they were systematically cheated by insurance companies that programmed computers to pay for less intensive services than were actually provided. (more…)
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