For individual policyholders of health insurance whose policies where rescinded by Blue Cross of California, a letter will be sent to the 6,000 or so people giving them the details of a proposed settlement reached with Blue Cross in the class action. Policyholders who do nothing are automatically included in the class and will be limited to the damages agreed to in the settlement. They will waive all other damages they might have claimed. (Click here for an informative article regarding what you should do when you receive a class action notice.)

The proposed settlement with Blue Cross awards each class member a maximum of $1000 and allows each of them to have his or her policy cancellation reviewed under the new standard Blue Cross has agreed to use. If the policyholder did not intentionally or willfully mislead Blue Cross in the application for coverage, Blue Cross may pay all the medical bills that it would have been required to pay under the policy if the policy had not been rescinded.

Confused about Blue Cross Class Action Settlement. Know your rights before you participate in the class action. You may have an individual lawsuit which could award you more damages than the class action. Find out which is right for you. [Sponsored Link]

Consumer attorneys point out that there are other damages many of those 6,000 people may have suffered. They may have experienced financial hardship because of unpaid medical bills and had to mortgage or sell a home or some other property or been forced to file bankruptcy. Their credit may have been damaged because of unpaid bills. There may have been delays in treatment caused by the policy cancellation, and the insured may have suffered emotional distress because of the policy cancellation. For example, a woman who received a diagnosis of breast cancer and then was told she had no medical coverage would most likely have suffered a great deal. If people who qualify for the class want to collect for these damages, they must opt out of the class action and file individual lawsuits. Click here for an informative article on the pros and cons of joining a class.

People who were able to absorb the cost of medical care without financial damage, who were able to find other insurance, and who did not suffer significant emotional distress may want to remain in the class. Consumer attorneys give the example of a child whose medical situation was not serious and there was minimal emotional distress as a possible class participant.

Anyone who suffered damages other than unpaid medical bills may want to consider bringing an individual lawsuit. They can have their case reviewed by an independent attorney who specializes in litigation with insurance companies at no risk.

Policyholders who qualify can consult with an attorney now; having the Blue Cross notice in your hand is not a prerequisite. Consumer attorneys point out that this is a golden opportunity to file lawsuits for complete damages because Blue Cross has just become the first large insurance company to admit that it was wrong to cancel individual insurance policies because of inadvertence or honest mistake. Moreover, California Governor Schwarzenegger, the California insurance commissioner, and the California Department of Managed Health Care have all joined with consumers to insist that this practice be stopped. One consumer advocate predicts that Blue Cross will be very anxious to clear this up and will probably reach settlement in all the cases within three to six months, so the sooner a claimant acts the sooner they may receive complete payment for the damages they suffered.

Confused about Blue Cross Class Action Settlement. Know your rights before you participate in the class action. You may have an individual lawsuit which could award you more damages than the class action. Find out which is right for you. [Sponsored Link]