WellPoint proceeds with $11.8M settlement with hospitals, despite dropouts

Though nearly 20 percent of the hospitals it approached have decided not to participate, WellPoint subsidiary Anthem Blue Cross of California is proceeding with its $11.8 million class action settlement with the California Hospital Association. The settlement pays hospitals for claims related to patients whose policies were retroactively canceled, establishing an $11.65 million fund to pay hospitals for services to members, and a $150,000 fund for patients who paid some or all of the bill after their policies were canceled. The hospitals, for their part, will agree not to make any further attempts to collect from the patients.

While the majority of California Hospital Association members went for the deal, three entities opted out. Sutter Health, Catholic Healthcare West and St. Joseph Health System decided not to participate. Sutter said that the deal was not in the best interest of its affiliate hospitals; St. Joseph said it wanted to resolve the issue without going to court; and CHW said that it plans to proceed with its own suit against Anthem to collect money owed to its facilities. Collectively, the three entities represent 74 hospitals, or less than one-quarter of the Association's membership.

To learn more about the settlement:
- read this Sacramento Business Journal article

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