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News in brief - Nov. 6, 2000


Blues parent settles suit - Aetna introduces open access plans - HMO increase of 11.4% planned - PacifiCare makes cuts in Colorado - Drug costs to jump 20% - Harvard Pilgrim back on track

Nov. 6, 2000.

Blues parent settles suit

Cerulean Inc., the parent firm of Blue Cross Blue Shield of Georgia, settled a class action lawsuit by 70,000 Cerulean shareholders. The suit alleged that shareholders should have gotten shares of Cerulean stock when the Georgia Blues converted to a for-profit.

The settlement requires WellPoint Health Networks Inc., which is in the process of acquiring Cerulean, to pay $5 million, which will be distributed to the shareholders who are part of the lawsuit.

Aetna introduces open access plans

Aetna U.S. Healthcare has premiered open access health plans that let patients go directly to specialists without getting a referral from a primary care physician. The plans will be available Jan. 1.

HMO increase of 11.4% planned

HMOs are estimating that premiums will rise an average of 11.4% next year, says a survey of HMOs across the country by the Sherlock Co., Gwynedd, Pa.

PacifiCare makes cuts in Colorado

PacifiCare of Colorado is dropping its HMO and point-of-service plans in 15 Colorado counties to stem its losses in that state. The company has lost about $5 million so far this year in Colorado. Its decision to pull out will affect about 25,000 PacifiCare members.

Drug costs to jump 20%

Prescription drug costs will increase about 20% in 2001, according to the 2001 Segal Health Plan Cost Trend Survey. Prescription drug claims will account for about 15% of health plan costs next year, up from 10% in 1995.

Harvard Pilgrim back on track

Harvard Pilgrim Health Plan is making good progress on financial recovery, says a Massachusetts Insurance Division report. The insurer's net loss for the year is projected at less than $10 million, which is on track for expectations for the year.

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