Blue Cross and Blue Shield of Louisiana announced today it is one of 23 Blue Cross and Blue Shield plans that have reached agreement with a nationwide group of physicians, resolving a class-action lawsuit that dealt with claims processing and the payment of physicians.
Blue Cross and Blue Shield of Louisiana agreed to pay approximately $2 million. The collective settlement is approximately $128 million, plus attorneys’ fees. This suit has been active for several years, so Blue Cross and Blue Shield of Louisiana was able to set aside funds in the event of a settlement or if the courts required payment. The settlement, less than 1 percent of the company’s 2006 revenue, will have no material financial impact and no effect on premiums.
The litigation centered how the Blue plans processed claims and reimbursed physicians for the services provided to their customers.
Blue Cross and Blue Shield of Louisiana has already made many of the changes required by the settlement:
- In October 2005, the company offered doctors and hospitals access to new software that makes it easier for them to understand why a claim was processed and paid a certain way.
- Blue Cross posted its fee schedules online in 2006.
- The company also began posting medical policies online.
“We have always had a very positive relationship with Louisiana doctors and hospitals, and our company has ranked first among all Blues plans nationwide for provider satisfaction for four consecutive years,” said John Maginnis, spokesperson for Blue Cross and Blue Shield of Louisiana. “We are always looking for ways to improve how we do business, and this settlement underscores our continued commitment to processing claims quickly and accurately. We are ready to move forward.”
Blue Cross and Blue Shield of Louisiana is Louisiana-owned and -operated. Marking its 73rd anniversary this year, the company is an independent licensee of the Blue Cross and Blue Shield Association. It is a tax-paying mutual company, owned by its policyholders. The company, headquartered in Baton Rouge, also has district offices in Alexandria, Houma, Lafayette, Lake Charles, Monroe, New Orleans and Shreveport. The company’s subsidiaries include HMO Louisiana, Inc. and Southern National Life Insurance Company, Inc.
