WellPoint settles class action with Anthem policyholders for $90 million

WellPoint, the nation’s second-largest health insurer, announced Friday the surprise settlement of a class action lawsuit alleging that the company’s “Anthem subsidiary underpaid policyholders who opted to receive cash instead of stock when the Blue Cross-Blue Shield franchisee converted in 2001 into a stock company,” the Indianapolis Star reports. In the settlement with more than 700,000 former Anthem policyholders, WellPoint has agreed to pay $90 million. Had the case gone to trial, “claims could have run into the hundreds of millions of dollars,” the article said. For more, read the full story.

Insurance Industry, Settlements