California Blue Cross To Pay $11.8M Settlement

Law360, New York (July 7, 2008, 12:00 AM EDT) -- California's oldest health care company has reached an $11.8 million settlement in a class action filed by the state's hospitals and physicians alleging that the company illegally rescinded patients' policies to avoid paying their medical bills.

The company — which recently changed its name from Blue Cross of California to Anthem Blue Cross — must reimburse both hospitals and patients whose policies were rescinded. In turn, hospitals will stop collections on unpaid medical bills for those patients.

The U.S. District Court for the Central District of...
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