April 12, 2002 Pacificare Health Systems

Pacificare Health Systems has agreed to pay over $87 Million Dollars to settle claims asserted in a qui tam case filed by Valerie Fletcher, a former employee. The allegations of the case, which concerned the Federal Health Benefits Program (FEHBP), were that Pacificare failed to give FEHBP the most favorable rates it gave similarly situated commercial customers, failed to coordinate FEHBP benefits with those provided to annuitants over age 65 under the Medicare program, and submitted statements to the government which failed to fully disclose rate adjustments due to FEHBP.

As part of the settlement, Ms. Fletcher will receive approximately $3.5 Million Dollars for having filed the qui tam case.

See U.S. Dept of Justice Press Release 4/12/02

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