Blue Cross/Blue Shield Minnesota has been sued by policyholders seeking the return of $412 million that the health insurer won as part of the tobacco industry’s 1998 settlement with the state of Minnesota. A dozen lawyers representing businesses and individuals who bought Blue Cross health insurance are arguing that most of the settlement money should go to current and former plan members. The company had already approved $60 million in rebates, an average of $138 per subscriber, that will be frozen until the matter is resolved.
The state’s Commerce Department had allocated some of the settlement funds for community health clinics, disease-prevention programs, anti-smoking efforts, and rebates to Blue Cross members. As a result of the suit, the insurer suspended its search for an agency to handle its 10-year, $80 million, anti-tobacco public relations and marketing campaign.
