LA settles health insurance lawsuit for $6M

LOS ANGELES (AP) — The Los Angeles city attorney has settled a lawsuit that alleged health insurer Anthem Blue Cross illegally dropped more than 6,000 policyholders from coverage.

Thursday’s $6 million settlement is far less than the $1 billion in fines and restitution former City Attorney Rocky Delgadillo threatened when the lawsuit was filed in 2008.

Chief Deputy City Attorney William Carter says none of the people who initially worked on the case for Delgadillo still work in the office and the current staff is satisfied with the settlements.

Delgadillo filed a similar lawsuit seeking $1 billion in fines and restitution from Blue Shield of California in 2008. It was settled for $2 million in 2011.

Anthem Blue Cross is a subsidiary of Indianapolis-based WellPoint Inc.

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