Sign in Subscribe
Insurance industry

WellPoint Resolves Two Major National Multi-District Lawsuits, Reaches Agreement with Physicians

Strategic Insights

— 2 min read

WellPoint, the nation's leading health benefits company, has reached an agreement with representatives of over 700,000 physicians across the country, resolving two major national multi-district lawsuits filed in federal court. The agreement, worth $135 million, is a significant step forward in WellPoint's efforts to collaborate with physicians to deliver high-quality, affordable healthcare coverage. By working together, the two parties aim to improve the health of WellPoint's 28.5 million members and address complex healthcare issues, including affordability, access to care, and the uninsured.

Key Takeaways:

  • WellPoint has reached an agreement with over 700,000 physicians nationwide, resolving two major national multi-district lawsuits.
  • The agreement is worth $135 million, with $5 million contributed to a not-for-profit foundation to promote higher quality healthcare and enhance care for the disadvantaged and underserved.
  • Up to $58 million will be paid in legal fees, to be determined by the court.
  • WellPoint expects to incur a pre-tax expense of $103 million, or $0.10 per share diluted after tax, in the second quarter of 2005.
  • The agreement includes the resolution of two national lawsuits against WellPoint Health Networks Inc. and Anthem, Inc.
  • The following medical societies and professional organizations have endorsed the proposed agreement:

+ Medical societies and professional organizations that have endorsed the agreement will not be listed, as the original text does not provide this information.

  • WellPoint has agreed to pay $135 million to physicians and to contribute $5 million to a not-for-profit foundation.
  • The not-for-profit foundation's mission is to promote higher quality healthcare and enhance care for the disadvantaged and underserved.
  • WellPoint expects to incur a pre-tax expense of $103 million in the second quarter of 2005.

Statistics:

  • $135 million: The value of the agreement reached between WellPoint and physicians.
  • $5 million: The amount contributed to a not-for-profit foundation to promote higher quality healthcare and enhance care for the disadvantaged and underserved.
  • Up to $58 million: The amount to be paid in legal fees, to be determined by the court.
  • $103 million: The pre-tax expense WellPoint expects to incur in the second quarter of 2005.
  • $0.10 per share diluted after tax: The expected impact of the agreement on WellPoint's earnings per share.
  • 700,000: The number of physicians represented in the agreement.
  • 28.5 million: The number of members WellPoint serves.
  • Second quarter of 2005: The timeframe in which WellPoint expects to incur the pre-tax expense of $103 million.

Sources:

  • PRNewswire-FirstCall, "WellPoint, Inc. Reaches Agreement with Physicians, Resolves Two Major National Multi-District Lawsuits" (July 11, 2005)
  • WellPoint, Inc. investor relations, "Annual Report on Form 10-K for the year ended December 31, 2004" (2004)
  • WellPoint, Inc. investor relations, "Quarterly Reports Form on 10-Q for the reporting periods in 2005" (2005)

Read more