The parties have reached a tentative $1,785,000 settlement in an action filed against American Express Property Casualty Companies, American Express Assurance Company, and IDS Property Casualty Insurance Company on behalf of all persons who, during the period from November 6, 1992, to September 25, 2003, were injured in automobile accidents while a driver or passenger in an automobile insured under one of the companies’ auto insurance policies, and whose medical bills were not paid in full up to the policies’ limits. The settlement includes any medical providers who received an assignment of rights to the insured persons’ rights regarding claims for payment of medical expenses. Claim forms must be postmarked by March 2, 2004, to be considered valid.
The action alleges that American Express and affiliated companies failed to pay, in whole or in part, medical expense benefits under the medical payments or personal injury protection coverage afforded in the companies’ automobile insurance policies. The companies allegedly made those decisions based on their use of certain systems and procedures --including a computer database, peer reviews, and independent medical examinations --to adjust claims for payment of such benefits.
Specifically, the following two classes may receive cash payments under the terms of the settlement:
(1) those persons who, during the applicable period, were injured in automobile accidents while a driver or passenger in an automobile insured under one of the companies’ automobile insurance policies, (a) who submitted claims for payment of medical bills to American Express, under medical payments or personal injury protection coverage, relating to their injuries arising from the automobile accident in question; (b) which claims were submitted to a form of bill review; (c) who received an amount less than the amount of the submitted medical bills; and (d) in connection with the accident in question, received less than the full amount of the stated medical payments or personal injury protection policy limits; and
(2) those medical providers who provided medical services to the persons described in (1) whose medical bills those persons submitted to American Express, and who received an assignment of the insured persons' rights regarding claims for payment of medical expenses.
Completed claim forms must be mailed to:
AMEX Medpay Litigation
P. O. Box 497
Wood River, Illinois 62095
Claim forms must include information regarding the loss, any documentation the claimant believes supports his or her claim, and an affirmation that the information set forth in the claim form is correct.
The settlement provides for a cash payment equal to 60% of the difference between the amount of the bills submitted and the amount previously paid by American Express, as established by the documentation submitted by the claimant and American Express. If valid claims are made by both an insured person and a medical provider for the same medical bill, American Express will submit the claim of the insured and medical provider to a neutral evaluator, who will then determine the distribution.
The settlement will not be effective until the court grants it final approval. The court has scheduled a hearing on the matter for January 15, 2004.