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Blue Shield To Pay $2M To Settle Lawsuit With L.A.

LOS ANGELES (AP) — Blue Shield of California says it has agreed to pay $2 million to settle a lawsuit with the city of Los Angeles that alleged the provider wrongly dropped policyholders after they became ill and other unfair business practices.

The insurer's spokesman Steve Shivinsky said Wednesday that they settled the suit brought in 2008 to avoid the ongoing costs of litigation. Blue Shield did not accept blame in the settlement.

The lawsuit was filed by former City Attorney Rocky Delgadillo, seeking up to $1 billion in fines and restitution for Californians who allegedly lost insurance coverage after becoming ill.

The city attorney's office said the insurer is committed to taking aggressive, proactive steps to provide better access to health care.

The settlement will be split by the city and the county.

(Copyright 2011 The Associated Press)

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