Consumers involved in the Blue Cross of California proposed settlement announced recently should make sure that they protect their rights. The proposed settlement would allow class members to receive $1,000 and have their rescission reviewed. If the rescission was in error, Blue Cross would cover any medical expenses incurred by the policyholder during the policy period.

This is good news for some, but not for everyone. The Blue Cross class action is categorized as an “opt out” action. This means that members of the action must opt out of the litigation to pursue private lawsuits against the company or they will be subjected to the terms outlined above.

Is it better to stay in the class or opt out?

Staying in the class or opting out of it is a personal choice and depends on the policyholder’s circumstances. According to Attorney Bob Scott, a partner with Advocate Law Group, “If you’re in the class, the most you can expect is the thousand dollars and maybe getting your bills reviewed.

If, for example, it was the care of a child that had a small amount of medical care which the family was able to absorb and didn’t have any hardship or was able to get other insurance for the child, then it probably isn’t worth it for that family to go after any bigger damage. The child probably didn’t have any emotional distress, so there’s really nothing else than getting those medical bills paid.

However, if it was a family member that was diagnosed with breast cancer, that person lost the ability to have follow up medical care for their breast cancer and they’ve been thrown into financial disarray because $20,000, $50,000 or $100,000 worth of medical bills are now staring them right down the throat. Those people have had to change their lives and may very well want to talk with an individual lawyer.”

Consumers should know that damages in a private lawsuit could include medical bills that were denied or never submitted, attorneys’ fees, economic harm, credit damage that resulted from the inability to pay bills, emotional distress and possible punitive damages. These are not available to anyone who decides not to opt out and stays in the class action.

There’s no fine line – when in doubt, contact an attorney

Unfortunately, there’s no fine line that can be drawn to know whether to stay in the action or to opt out. Attorney Scott put it best, “Having practiced this type of law for 25 - 30 years, my experience is that when people come to me, they know they’ve been harmed and have suffered serious insult to their family and their lives. Those people are the people that won’t need us to tell them; they will know that they want to take action themselves.

People have to recognize that their remedies are going to be significantly limited if they have suffered a major hardship. If they have, they ought to think about it and seek the advice of skilled counsel to see if there’s a better road to follow. At this moment in time, it really is a golden opportunity for those people to find the right lawyers and to bring their case against Blue Cross.”

If you don’t know whether to opt in or out, contact an experienced attorney to go over your circumstances. Many offer a free initial consultation and can advise you as to which option is best for you. To find an attorney, click here.