File by Oct. 19 to Qualify for Settlement Payment

Family physicians who are participants in the Blue Cross Blue Shield, or BCBS, class-action settlement, take note: To qualify for a settlement payment, the physician settlement claim form must be completed, signed and postmarked no later than Oct. 19, 2007.

All participating physicians should have received a mailing earlier this summer from the Blue Parties' Settlement Administrator that included a claims form (4-page PDF; About PDFs) and instructions for filling out the form.

As part of the settlement, nearly two dozen BCBS plans have agreed to a total payment of more than $131 million and have committed to instituting business practices that should benefit physicians. For instance, the insurers have agreed to establish external panels to review physicians' billing disputes, construct more transparent fee schedules and payment explanations, and clarify language and review procedures for determining "medical necessity." BCBS companies also have agreed to establish physician advisory committees at the state level with an opportunity for family medicine representation.

Depending on U.S. District Court Judge Federico Moreno's orders, the insurers also could pay as much as $49 million in legal fees.

The settlement hearing is set for Nov. 14 in Miami; funds from the settlement will be disbursed to eligible physicians after final court approval of the settlement.

Nearly 900,000 physicians nationwide joined the class action that was filed in 2003 in the Southern District of Florida U.S. District Court in Miami. The physicians -- backed by medical societies across the country -- claimed health insurers intentionally and unfairly cut physician reimbursement.

Specifically, physicians allege that between May 22, 1999, and May 31, 2007, certain BCBS companies conspired to improperly deny, delay and reduce payments to physicians by, among other means

The BCBS case is reminiscent of a separate but similar lawsuit brought by physicians against several insurers, including Aetna, CIGNA, Humana, Prudential and WellPoint Inc. Settlements favorable to the involved physicians were reached in those cases, as well.

Additional information on the BCBS settlement, including a copy of the proposed settlement notice, (8-page PDF; About PDFs) is available on a physician settlement Web site maintained by BCBS.

Physicians also can find information on this and other class-action settlement cases at an HMO settlements Web site.