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American Family Auto Insurance Medpay Class Action Settlement
By Matt O’Donnell
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American Family Insurance has agreed to a class action lawsuit settlement over allegations it made improperly low payments on claims submitted through its automobile Medpay coverage. If you were injured in an automobile accident while a driver or passenger in a vehicle insured by American Family, you may be eligible for a cash payment from the class action settlement. The settlement also includes medical providers who asserted claims for these individuals.
The American Family Insurance settlement will resolve a nearly 13-year-old case (East Washington Chiropractic, P.C., et al. v. American Family Mutual Insurance Company) alleging the defendants used biased computer software to reduce payments made under its automobile Medpay coverage.
The defendants — American Family Mutual Insurance Company, American Standard Insurance Company of Wisconsin, American Family Insurance Company, and American Standard Insurance Company of Ohio – deny any wrong doing but have agreed to a class action lawsuit settlement to resolve the litigation.
Class Members of the American Family Medpay settlement include all persons in Arizona, Idaho, Illinois, Indiana, Iowa, Missouri, Nebraska, Nevada, Ohio, South Dakota, and Wisconsin who, during the period from July 25, 1990 through February 25, 2013, were injured in automobile accidents while drivers or passengers in an automobile insured by American Family, and who:
(1) Submitted first-party claims for payment of Medical Payments;
(2) had their claims adjusted by a computer report;
(3) Were paid or tendered an amount less than the submitted expenses; and
(4) Were paid or tendered an amount less than the stated Medical Payments limits.
The class action settlement also includes all medical providers and entities who, by written assignment, have the right to assert the claims of persons described above.
If the court approves the American Family Medpay settlement, Class Members will be paid the greater of (A) 20% of the reduction of Medical Payments in payment of medical expenses, as shown by documentation presented in a valid Claim Form, subject to the Settlement Maximum of $400,000; or (B) $2.50, subject to the Settlement Maximum.
If you submit a valid Claim Form without proper documents to support the claim, you are entitled to a payment of only $2.50, subject to the Settlement Maximum of $400,000.
The only way to receive a payment under the American Family class action settlement is to submit a valid Claim Form postmarked on or before September 17, 2013.
A Final Fairness Hearing is scheduled for July 19, 2013.
Claim Forms and more information on your rights in the American Family Auto Insurance Medpay Class Action Lawsuit Settlement can be found at www.MedpayClassAction.com.
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Updated April 15th, 2013
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