May 11, 2006 – The territory's senior citizens got good news Thursday. Proceeds from an undistributed portion of a class action suit filed against insurance giant Blue Cross Blue Shield will now be used to benefit the territory's elder population.
With a wide smile, Ricardo J. Charaf, Community Foundation of the Virgin Islands board chairman, announced the establishment of the "Hodge Senior Citizen Assistance Fund" at a Thursday morning press briefing.
Charaf said the almost half-million dollar fund is the first dedicated to the needs of senior citizens in the Virgin Islands. The fund is the second-largest of CFVI's 80-plus funds.
The money in the fund is from a court-approved designation of an undistributed portion of a settlement fund paid by Blue Cross Blue Shield in a class action suit brought by named plaintiffs Lawrence Hodge, Gloria Hodge Davis and the late Gerald E. Hodge on behalf of all retired government employees.
The suit, filed in 2001 and handled by Maria Tankenson Hodge (wife of plaintiff Lawrence Hodge) and the law firm of Hodge and Francois, cited 3,491 members of the class — retirees over the age of 65 and their spouses covered by health insurance under the government's Blue Cross Blue Shield group policy. It covered claims filed between Jan. 1, 1998 and Sept. 30, 2001.
After the settlement was reached Dec. 9, 2002, Hodge said there was $3.4 million to be distributed to the plaintiffs.
Charaf praised attorney Hodge's labor on the case, calling it an "amazing job." And he thanked attorney Henry Feuerzeig, not present at the Thursday morning press briefing, for his help "in ironing out the details."
The focus of the suit was the refusal by Blue Cross to pay doctor bills for retirees who did not have Medicare Part B coverage. Standard Medicare, called Part A, is free; retirees must pay about $600 a year in premiums for Part B coverage, which helps pay doctor bills. Hodge said the insurance plan did not require retirees to sign up for Part B. However, she said, retirees who had Part B also were covered in the suit.
Hodge said Thursday that both class members with and without Part B coverage received settlement funds, varying from $715 to $1,800. "In addition," she said, "the defendant agreed to pay plaintiffs' counsel fees so that the class was not required to contribute to costs or fees. The settlement was approved by the Superior Court [then Territorial Court], and settlement proceeds were distributed in December 2003. In that distribution, a total of $2,949,457 was paid to a total of 2,606 Virgin Islanders."
However, she said, "There are still 657 retired people we could not locate who would be entitled to payment under the settlement if they come forward within the next six months. During this time," Hodge said, "CFVI will use the fund to pay any of those missing class members their share of the settlement."
After the six-month period, Hodge said, "CFVI is going to use the fund to benefit senior citizens in the Virgin Islands."
Hodge said later that her law firm had worked to locate missing members, advertising in USA Today and even looking in Mexico.
Hodge noted a bill passed by Sen. Lorraine Berry in 2004, which increases the maximum amount — from $1,000 to $2,000 — that an individual may get from an insurance company or bank after the death of a family member without having to go through a formal probate proceeding.
Hodge said the legislation is significant for members of the class suit because it will allow them to obtain settlement proceeds of deceased class members without going through probate.
Hodge had words of praise for those who had joined in the suit. "It takes courage to put your name down on a lawsuit against a big corporation, and they were the ones who did that, so I extend my appreciation to them for their action." She added, "I am sorry that Gerry [Hodge] couldn't be here with us, but I know he would be proud of what is being done today."
Plaintiff Gloria Hodge Davis described experiences she had with encouraging the retirees to join the suit. "They were scared to sign on," she said. "Then they went to people in government in high places they thought would protect them, but they were told 'you're on your own, son.'"
Later, Davis said, "They were happy. They wrote lots of nice letters. And some of them, actually, wondered why they didn't get more.
"It's the best thing I ever did in my life," Davis said.
CFVI President Dee Baecher-Brown said, "People can make a difference, not just for themselves, but for the community."
Baecher-Brown said in the next six months the foundation would determine what projects the fund will be used for. She said recreation activities and home visits would be considered, along with helping the territory's senior centers.
Attorney Hodge thanked CFVI for its good work in the community. She said, "It is the perfect organization to select to receive this donation because it allows donors to decide how a fund should be used. In this case, we wanted to be sure that the remaining members of the class suit … who did not receive their check for their part of the settlement would have an extended opportunity to be paid.
"CFVI worked with us to ensure that the donor agreement would do that," Hodge said. "Then the remainder of the fund, after any remaining class members are paid, will be devoted to helping senior citizens, especially those with medical problems and related financial needs."
Baecher-Brown said any person who has not received his or her settlement check should contact CFVI for payment. She said a short form will be made available for this purpose. "On confirmation that you are a class member who has not been paid," she said, "CFVI will issue your check."
Established in 1990, the foundation manages funds created by individuals and businesses to support educational, environmental, social and cultural initiatives in the territory. The foundation has grants available for community organizations, teachers, scholarships and programs to benefit children and families.
CFVI can be contacted at 774-6031.
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