News Releases

Thomas Litigation Statement

Contact:
Angela Feig
515.245.4551
feigab@wellmark.com

Wellmark Blue Cross and Blue Shield is one of 23 Blue Plans along with the Blue Cross and Blue Shield Association (BCBSA) that have reached an agreement with representatives of a nationwide class of physicians to resolve a class action lawsuit filed in Federal Court in Miami in 2003.  Wellmark Blue Cross and Blue Shield of South Dakota and Wellmark Health Plan of Iowa, Inc. also are parties to the agreement.

The agreement resolves past disagreements between the settling Plans and physicians and makes commitments to further promote communication and cooperation with physicians.

The settling Blue Plans will pay approximately $128 million to a fund created by the settling Plans, from which physicians may seek compensation or select a charitable organization to receive their payment.  In addition, the settling Plans will pay legal fees determined by the court, not to exceed approximately $49 million.

If approved by the court, the agreement resolves for the 23 Plans and the Association a national lawsuit filed in Miami, Fla., in May 2003, against many Blue Cross and Blue Shield Plans. The lawsuit initially was referred to as the “Thomas” case and, more recently, the “Love” case, reflecting a change in the lead plaintiff.

Wellmark will contribute approximately $5.4 million to the settlement fund.  The money has been accounted for in financial statements and will have no impact on members’ premiums or on the Wellmark workforce.  Wellmark’s contribution to the settlement fund was based generally on membership as compared to the other settling plans.

Wellmark has had and continues to have strong relationships with physicians. Wellmark is confident this resolution will benefit its customers and members and further strengthen relationships with physicians.

Copyright© 2008 Wellmark, Inc. All Rights Reserved.
Wellmark Blue Cross and Blue Shield is an Independent Licensee of the Blue Cross and Blue Shield Association. Blue Cross®, Blue Shield®, and the Cross® and Shield® symbols are registered marks of the Blue Cross and Blue Shield Association, an Association of Independent Blue Cross and Blue Shield Plans.