Wellmark Blue Cross and Blue Shield, along with 22 other Blues plans and the Blue Cross and Blue Shield Association, has reached an agreement as part of a nationwide class-action settlement that will pay physicians more than $128 million. Wellmark has agreed to contribute approximately $5.4 million to the settlement fund, according to a statement issued by the Des Moines-based health insurance company.

Additionally, the Blues plans will pay legal fees determined by the court, not to exceed approximately $49 million.

The lawsuit, Love et al. vs. Blue Cross Blue Shield Association et al., was filed in federal court in Miami in 2003. It identified numerous Blue Cross and Blue Shield plans as defendants in an alleged scheme to defraud doctors in violation of the federal Racketeer Influenced and Corrupt Organizations Act.

In addition to the cash settlement to be made to an estimated 900,000 doctors nationwide, the plans have agreed to streamline the way they work with doctors, which is expected to result in major savings to the health system. Among the changes, the plans have agreed to establish independent external review boards for resolving billing disputes with doctors and to ensure patients get medically necessary care as determined by their doctors.

Jeanine Freeman, senior vice president for legal affairs for the Iowa Medical Society, said the vast majority, if not all, of the approximately 5,000 actively practicing physicians in the state are part of the class.

According to Wellmark, the settlement payment “will have no impact on members’ premiums or on the Wellmark work force.” Wellmark’s contribution to the settlement was based generally on membership as compared to the other settling plans, the company said.