Blue Cross Class Action Settlement
This case was brought by Elizabeth Black on behalf of all Blue Cross Prudent Buyer health plan members. The class period is from May of 1997 through the present. Only individual Prudent Buyer health plans are part of this action. Group plans or any other plans that are not called "Prudent Buyer" are not part of this class action. Please carefully read the "Notice of Pendency of Class action" that was sent to each class member.
In Mrs. Black's particular case, she became a Blue Cross Prudent Buyer health plan member in 1998 and purchased this health care coverage for herself and her two sons. In June of 2000 Mrs. Black received a letter from Blue Cross indicating that her plan was being modified effective in 30 days. Among the changes to Mrs. Black's plan were the addition of a 10% co-pay (changed from 0% co-pay previously) and the increase in her prescription drug deductible from $100 to $250.
Mrs. Black and the plaintiff class contend that these modifications were impermissible under the law because, among others, the modification was not effective for the following year, but was effective within 30 days. Thus, a contract which Mrs. Black had previously entered into with Blue Cross for specified benefits during a specified period of time (one year beginning January 1 and ending December 31 of any particular year) was being unilaterally modified by Blue Cross.
It is important to note that this class applies to all persons who are covered under an annual deductible Blue Cross Prudent Buyer plan (either a subscriber or an enrollee) whose plan was modified mid-year by Blue Cross such that benefits were reduced. Any annual deductible Blue Cross Prudent Buyer plan from May 1997 through the present is eligible.
CASE UPDATES
March 2, 2007
The Court has FULLY and FINALLY approved the settlement of the Black v. Blue Cross Class Action. What this means is as follows: Those class members (we do not yet know who they are) who paid more than their original contracts called for will be re-paied 100% of their overpayment back. Since we do NOT know who any specific individuals are we must wait for Blue Cross to share their "overpayment" data with us before we will know how much any individual Blue Cross member will recover. We know there are 66,000 people who are entitled to reimbursement we simply do not know how much any individual subscriber will receive.
The payments should begin being distributed within the next 45 days. Please feel free to monitor the website for additional information. You may also email Paul Kiesel for further information, should you need it, at Kiesel@kbla.com.
Thank you for your continued patience.
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December 1, 2006, Blue Cross of California has agreed to settle the claims of over 66,000 class members whose health insurance contracts were changed mid-year in breach of their contracts with Blue Cross. Kiesel Boucher & Larson prevailed at trial, and Blue Cross agreed to reimburse all class members 100% of their damages, after attorneys' fees and costs. This means that any class member who incurred damages will receive a check for 100% of their actual losses. "The ability for class members to recover 100% of actual losses is a truly outstanding result for class members," said Paul Kiesel, one of the co-lead class counsel.