Blue Shield gets $2.5M in contract dispute settlement

Blue Shield of California has settled a contract dispute with Irvine, Calif.-based Monarch Healthcare and will receive $2.5 million from the physician group, the Orange County Register reported. Blue Shield claimed breach of contract when Monarch was purchased by UnitedHealth in 2011 because the medical group agreed to the acquisition without obtaining Blue Shield's consent. What's more, Blue Shield alleged that Monarch was turning its members toward rival health plans and declining to treat some members. As a result, Blue Shield terminated the contract with Monarch last year. The insurer said it will use the $2.5 million settlement to fund its philanthropic foundation, helping improve access to care and providing domestic violence services. Article

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