Blue Cross, Blue Shield Settle with Doctors for $128 million

A group of 23 Blue Cross and Blue Shield Plans and the Blue Cross and Blue Shield Association (BCBSA) announced today that they have reached an agreement with representatives of a nationwide class of physicians to resolve a class action lawsuit filed in federal court in Miami in 2003. Known initially as the "Thomas" case and more recently as the "Love" case, the agreement resolves past disagreements between the Blue Plans and physicians and makes commitments to further promote cooperation and communication with physicians.

"Each of the settling Plans and the BCBSA made an independent decision that this agreement is in the best interest of the settling Plans and it will strengthen the settling Plan's relationships with physicians and benefit its members," said Michael A. Pope, spokesperson for the settling Plans and an attorney with McDermott Will & Emery.

The settling Plans will pay approximately $128 million to a fund created by the settling Plans from which physicians may seek compensation or select a charitable organization to receive their payment. In addition, the settling Blue Plans will pay legal fees determined by the court, not to exceed approximately $49 million.