Print Page

Overview

IMPORTANT UPDATE: PLEASE BE ADVISED THAT DISTRIBUTION TO MEMBERS OF THE UNPAID SUBCLASS COMMENCED ON AUGUST 4, 2009.

On October 16, 2007 plaintiff Phillip Marsh commenced an action against Defendants entitled Marsh v. Blue Cross Life & Health Insurance Company, et al. (San Diego Superior Court Case No. 37-2007-00077967-CU-BC-CTL) (the “Action”) which was brought as a class action and which asserted claims for breach of the implied covenant of good faith and fair dealing, breach of contract, and violations of California Business & Professions Code § 17200, et seq. arising from Defendants’ miscalculation of annual deductible or out of pocket limits due to a software error. Defendants deny all allegations of wrongdoing. Defendants further contend that the miscalculation of the deductibles and the out of pocket limits were unintentional. The Court has not decided whether Plaintiff or Defendants is correct.

For purposes of settlement, the Court has certified a class consisting of the following individuals:

All members, subscribers, or enrollees and their dependants in health insurance plans or policies offered by the Defendants (1) whose plan had an annual deductible or out of pocket limit; (2) whose annual deductible or out of pocket limit was calculated improperly due to technological issues that arose in connection with a change in Defendants’ member account numbers from an alpha-numeric to just a numeric number (the “Software Error”); (3) who were charged more than their annual deductible or out of pocket limit as a result of the Software Error; (4) from October 16, 2003 through October 16, 2007; and (5) who may or may not have been reimbursed for the amounts paid in excess of the member’s deductible or out of pocket limit.

Participate in the Settlement

As part of the Settlement Agreement, Settlement Class Members need not submit a claim. Defendants either have already reimbursed Class Members or will reimburse any and all amounts each Class Member was overcharged due to the Software Error.

Exclusions and Objections

The deadline to exclude yourself from the settlement, intervene or object to or comment in support of the settlement was February 28, 2009.

Fairness Hearing

On April 10, 2009 at 10:30 a.m., in Department C-60, San Diego Superior Court, 330 West Broadway, San Diego, CA 92101, a hearing was held, and on April 16, 2009, the Settlement Agreement was finally approved as fair, reasonable and adequate.

Please note the following important dates:
Date Case-Related Event
February 28, 2009
[Expired]		 Request for Exclusion Deadline (received)
February 28, 2009
[Expired]		 Objection/Intervention Filing Deadline (received)
April 10, 2009
at 10:30 a.m.
[Approved]		 Fairness Hearing