Published Thursday, May 14, 1998,
in the Pioneer Press.

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The lawsuit, filed Tuesday in Dakota County District Court in Hastings, demands that the Eagan-based health insurer pass an undetermined amount of the settlement to its members, whose premiums over the years reflected the costs associated with treating smoking-related illnesses.

Besides asking the court to certify the complaint as a class-action lawsuit, the plaintiffs want the court to determine the amount of money that should be passed on to the Blues' members.

Karl Oestreich, a Blue Cross spokesman, said the company had received word late Wednesday afternoon of a similar lawsuit filed in Hennepin County. No details of the second suit were available.

``It would be unjust and inequitable for Blue Cross to be paid twice for payments made to health care providers for the treatment of smoking-related illnesses and ailments,'' the suit said.

But Blue Cross spokesman Oestreich disagrees, saying the lawsuit represents bad policy. ``It undermines our goal of improving the health of our members and the lives of all Minnesotans.''

According to the complaint, the company repeatedly told the court in the tobacco trial that it was suing on behalf of its members. But since the settlement was reached last Friday, company officials have told reporters -- and announced in full-page newspaper ads -- that the settlement money will be used to fund programs aimed at reducing smoking rates.

``Blue Cross CEO Andy Czajkowski stated recently that the company believes such smoking reduction programs are `a wiser use of the money, as opposed to a rebate,' '' the lawsuit said.

However, the lawsuit claims that by not returning the money to its members, the company ``will enjoy a double recovery -- receiving money from both plaintiffs and the tobacco industry for their health care expenditures,'' the lawsuit said.

The Blues' Oestreich disagrees.

``None of the money will stay with Blue Cross,'' he said. ``Look at it from an impact status. If we can reduce smoking rates among our members by 30 percent, we can save $350 million over 10 years and $700 million in 15 years. Who's going to win in a suit like this? It's the five or six law firms who sign on (to represent the plaintiffs).''

Sam Heins, a Minneapolis lawyer who is a member of one of the six law firms bringing the suit, said Wednesday that plaintiffs' lawyers have agreed not to comment on the issues at this time.