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Blue Cross Blue Shield of Rhode Island Settles for $17.5 Million

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Case ID: 4358 | Drugs / Medical | 07/22/2005

Thousands of Rhode Islanders will be getting checks from Blue Cross and Blue Shield of Rhode Island. That’s after Blue Cross, the state’s largest health insurer, agreed on July 21, 2005 to settle two class-action lawsuits.

Under approved settlement, Blue Cross has agreed to pay 17.5 million dollars to settle the federal and state suits. The money will go to about 116-thousand current and former Blue Cross customers. Under the settlement, 115,000 people will receive checks from $10 to $25,000, many of them Rhode Islanders. Five plaintiffs each get $25,000.

The settlement ends the nine year legal battle. Plaintiffs sought up to $75 million on behalf of people insured by Blue Cross dating back to 1990. Plaintiffs had accused Blue Cross of cheating subscribers by not passing along discounts negotiated for prescription drugs and health services.

Blue Cross admits no wrongdoing in the settlements, approved by a state and federal judge. An attorney for the health insurer says the company settled because it would have faced at least one lengthy trial.


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