Calif. doctors to get cash from Blues settlement
NEWS IN BRIEF — Posted May 17, 2004
California physicians who are part of a $4.2 million class-action settlement reached between the California Medical Assn. and Blue Cross of California should start receiving checks this month.
The CMA sued Blue Cross over 1993-96 retroactive fee reductions, arguing that the company breached contracts and breached the implied covenant of good faith and fair dealing. Blue Cross agreed to settle the lawsuit, which was filed in 1997, after the court said the Employee Retirement Income Security Act of 1974 did not preempt the claim and that the lawsuit could be arbitrated on a class-action basis.
The checks mailed to physicians will vary, based on each physician's 1099s and other documentation and proof of claims filed.
Note: This item originally appeared at http://www.ama-assn.org/amednews/2004/05/17/prbf0517.htm.