Politics & policy

Insight into federal and state health care legislation & CMS regulation

Minnesota Blues To Keep Proceeds From Tobacco Suit

The only health plan in the country to recover damages from tobacco companies has fought off a court challenge that sought to distribute proceeds from the tobacco settlement directly to policyholders.

Blue Cross and Blue Shield of Minnesota reached a settlement with tobacco companies in May. It calls for the insurer to receive $469 million to cover its costs of treating smoking-related illnesses over the years.

Seventeen law firms sued BCBS shortly afterward, in an effort to force the Blues to repay the money to subscribers.

Instead, BCBS intends to use the tobacco settlement proceeds to reduce tobacco use and other health risks among its members. Minnesota's Commerce Department, which oversees health plans, must approve the insurer's plan for spending settlement money.

Subscribe to Our Newsletters

Monthly table of contents

Be notified as each issue of Managed Care is available online.

Biweekly newsletter

Recent topics have included:

  • Doug Jones and the ACA, Epic misses a White House meeting, and man caves for man-flu sufferers
  • CVS-Aetna deal may trigger merger mania, Johns Hopkins criticized for lack of asthma prevention, & Columbia sees free-ride future for all of its med students

PTCommunity news

New drug approvals, clinical trials, drug management. Three times per week.

UP NEXT

2018 Year in Preview
By Susan Ladika
2018 Year in Preview
By Thomas Reinke