|
Frequently Asked Questions
What Is This “Notice” Letter Talking About? The “Notice” you received refers to the settlement of a class action lawsuit against Blue Shield (discussed in the next paragraph). You received the Notice because you may be a member of the Class, and may be entitled to receive a cash payment. YOU ARE NOT BEING SUED. In April 2003, Linda Lehman filed a class action lawsuit against Blue Shield of California concerning revisions Blue Shield made in April 2002 to its risk rating structure, which included the addition of a new, lowest tier called “Tier 1.” Blue Shield’s risk rating structure affects the dues subscribers are assessed for Blue Shield health plans. Blue Shield automatically moved subscribers to Tier 1 who qualified under a formula that took into account several factors, including subscriber medical conditions and expenses over a period up to three years. Among other things, the lawsuit alleged that the risk tier revision had the effect of raising dues for subscribers who were not placed in Tier 1 and that the method used to place subscribers in the new tier structure were inconsistent with Blue Shield’s subscriber agreements and representations previously made by Blue Shield The Notice was provided to you so that you could decide if you wanted to be included as part of the Settlement and receive the benefits under the Settlement, or if you wanted to opt-out (exclude yourself) from the Settlement Class, or if you wanted to comment about the settlement. YOU ARE NOT BEING SUED. If Blue Shield’s records show that you were enrolled in an Individual and Family Plan on March 31, 2002, and between April 1, 2002 and June 30, 2002, you were placed into Tier 2, 3, 4, or 5 following the revisions to Blue Shield’s risk tier structure, then under the terms of the Settlement you are included in the Settlement Class and you should have been mailed a Notice. In a class action, one or more people, called Class Representatives (in this Linda Lehman), sue on behalf of all other people, the “Class,” who have similar claims. All of these people are called “Class members.” One court resolves the issues in the case for all Class Members, except for those who exclude themselves from the Class. California Superior Court Judge James L. Warren of the San Francisco Superior Court hears matters in this class action. How Do I Know If I Am Part Of The Settlement? Membership in the Settlement Class depends on whether you were enrolled in an Individual and Family Plan on March 31, 2002, and between April 1, 2002 and June 30, 2002, were placed in to Tier 2, 3, 4, or 5 following Blue Shield’s revision of its risk rating tier structure. The Settlement Class is defined as: All Subscribers who on March 31, 2002, were enrolled in a Blue Shield of California Individual and Family Plan, and between April 1, 2002 and June 30, 2002, were placed into Tiers 2, 3, 4, or 5 following Blue Shield’s revision of its risk rating tier structure. Who Was Mailed The Notice Of The Proposed Settlement? If Blue Shield’s records show that as of March 31, 2002 you were enrolled in an Individual and Family Plan and between April 1, 2002 and June 30, 2002, were placed into Tier 2, 3, 4, or 5 following Blue Shield’s revision of its risk rating tier structure, then you should have been mailed a Notice and an accompanying Claim Form. What If I Did Not Receive A Class Notice Or I Lost It? If you did not receive a Class Notice or need a new one, you can access a pdf version of the document and print it from the official settlement website at www.healthplansettlement.com. You may also obtain a Class Notice by calling, toll-free, 1-800-295-3804. Please be advised that the deadline to mail or electronically file a claim passed on April 11, 2006. Who is representing me in this litigation? You are being represented by the following law firm as Class Counsel:
What Relief Is Available Under The Settlement? Under the proposed settlement, Blue Shield will pay $6.5 million into an interest-bearing account. After deduction of class notice and settlement administration costs, the award of attorneys’ fees and expenses that the Court approved, and the incentive award that the Court approved, the balance of the settlement fund will be distributed to class members pursuant to the Plan of Allocation, available here. Under the terms of the Plan of Allocation, the settlement fund will be distributed proportionally based on the Tier 2, 3, 4 or 5 dues you paid in relation to the Tier 2, 3, 4 or 5 dues paid by all other claimants. If I Want To Participate In The Settlement, What Do I Do? The deadline to mail or electronically file a claim passed on April 11, 2006. How Do I Make A Claim And Receive My Benefits? The deadline to mail or electronically file a claim passed on April 11, 2006. When Will I Receive My Benefits Under The Settlement? The Claims Administrator will begin issuing cash payments to people who submitted timely and valid claims after the time has passed for anyone to appeal the settlement. The Court granted the Settlement final approval on March 27, 2006. Blue Shield and the Claims Administrators are in the process of completing their review of all claims for accuracy and completeness, and expect to complete this process by September 30, 2006. Once all claims are processed, we expect payments to go out to all valid claimants within 120 days. We cannot tell individual class members the amounts of their settlement payments at this time. If I Do Not Do Anything, What Happens? If you did not submit a claim within the time period identified in the Notice, and you did not opt out, you remain in the class, but you will not receive a settlement payment and you will release all of your rights relating to the legal claims in this case. What Are The Deadlines For Submitting A Claim? The deadline to mail or electronically file a claim passed on April 11, 2006. What If My Name or Address Has Changed? If your address changes after you have submitted your Claim Form you must notify the Claims Administrator of your new address by writing to the Blue Shield of California Settlement Claims Administrator, P.O. Box 91054, Seattle, Washington 98111-9154, or by calling, toll-free 1-800-295-3804. The deadline to request exclusion (opt-out) from the Settlement has expired. What Happens If I Excluded Myself (Opted-out) From The Settlement? If you opted out of this Settlement you are NOT eligible to receive any benefits under the Settlement Agreement, and you are not bound by any further orders or judgments, whether favorable or unfavorable to the Class. You retain any rights you may have to file or pursue, at your own expense, any claims and lawsuits against Blue Shield of California arising out of the alleged wrongful charging practices at issue. State laws may limit the time within which any suits must be filed. You are not permitted to use the existence or terms of the Settlement Agreement or this Notice as evidence of any admission by Blue Shield of California regarding fault, liability, level of damages, or any similar issues. What Happens If I Did Not Exclude Myself (Opt-Out) From The Settlement Class? If you meet the definition of the Settlement Class and did not opt-out, you remain in the Settlement Class. You are bound by all proceedings, orders, and judgements entered in connection with the Settlement. A hearing was held on March 27, 2006, at 9:30 a.m., before the Honorable James L. Warren. The Settlement was granted final approval. How Do I Get In Touch With The Attorneys For The Settlement Class? You can contact Class Counsel by sending an e-mail to healthplansettlement@girardgibbs.com. Due to the high volume of e-mails, it may take up to three business days to respond to your e-mail. Please do not direct any questions to the Court. Do I Have To Pay An Attorney For Any Of This? No. You are not responsible for paying any attorneys' fees or expenses out of your own pocket. Any fees and expenses of the Plaintiff’s attorneys in connection with this case will be paid from the Settlement Fund in the amount approved by the Court. This litigation began in April 2003. Plaintiff’s counsel in this lawsuit has worked on the case on an entirely contingent basis, which means they agreed to be paid only if they eventually recovered something for their client. Thus, at this time, Plaintiff’s counsel have not been paid for their services or received any reimbursement for out-of-pocket expenses. As a result of Plaintiff’s counsel’s efforts in this litigation, they were able to successfully negotiate the present settlement. As part of the settlement, Plaintiff’s counsel was granted by the Court an award of attorneys’ fees of thirty percent (30%) of the settlement ($1.95 million) and reimbursement of the expenses they advanced in the litigation in the approximate amount of $95,000, to be paid from the $6.5 million settlement fund. Plaintiff’s counsel was granted by the Court an incentive award to the named Plaintiff in the amount of $3,000. Under no circumstances will you be required to pay any attorneys’ fees or costs as a consequence of your decision to participate in the settlement. What Is The $3000 “Incentive Payment” To The Class Representative? The Court approved a $3000 incentive payment to the Class representative. The Class Representative, Linda Lehman, is the individual who originally filed the lawsuit against Blue Shield. The incentive award is granted in recognition of the time and effort Mrs. Lehman expended in pursuing the lawsuit, in appearing for deposition, responding to discovery, and in fulfilling her obligation and responsibilities as Class Representative, and of the benefits conferred on the Class by the settlement. How Did You Get My Address/Other Personal Information? The list of addresses for mailing the settlement notice was taken from Blue Shield’s records. The mailing will not result in disclosure of your financial or other identifying information. All reasonable efforts were undertaken to mail the notice only to potential Class Members. No, Blue Shield will not raise your dues, terminate your coverage or retaliate against you in any way if you participated in the settlement and filed a claim. What If I Still Have Questions? If you still have questions, feel free to contact us at healthplansettlement@girardgibbs.com. |
|
|