The Tennessee Medical Association v Blue Cross Blue Shield of Tennessee
Blue Cross Blue Shield Of Tennessee Settles Lawsuit for $128 Million
The Tennessee Medical Association (TMA) and Blue Cross Blue Shield of Tennessee (BCBST) have resolved a five-year class action lawsuit over billing and other business practices.
Attorneys representing the TMA and more than 900,000 physicians and their medical societies nationwide announced the settlement. A national class action lawsuit was pending in the federal court of the Southern District of Florida, claimed the TMA.
"The provisions of the settlement call for BCBST and other plans to pay more than $128 million to physician-class members, but more importantly to physicians, the settlement will set into motion a series of important business practice changes that bring the estimated value of the entire settlement consideration to well over $1 billion," TMA said in a statement.
"We regretted having to file lawsuits five years ago to improve the business practices of the largest insurance companies, but the situation had become intolerable for our members and their patients," TMA's president, said in a release.
According to the release, the suit alleged that numerous Blue Cross Blue Shield plans including BCBST, "had co-conspired in a massive scheme to defraud doctors in violation of the federal Racketeer Influenced and Corrupt Organization Act."
The settlement meant that more than 90 percent of Blue Cross Blue Shield Plans in the country have settled this class action with physicians, including the original claims filed in Tennessee State court in 2002 by the TMA against BCBST.
Of TMA's lawsuits in 2002 against Aetna, Cigna, BCBST and United Healthcare, only TMA's claims against United Healthcare remain unresolved. That case is pending in the U.S. District Court, Southern District of Florida, Miami Division.
The Tennessee Medical Association is a 7,500-member professional organization for medical doctors and doctors of osteopathy.
