The settlement resolves all claims involving the sale or underwriting of allegedly invalid or illegal insurance covering members of certain benefits programs (the "Benefits Programs"), including (1) the "HealthExtras Catastrophic Accidental Disability Program," the "HealthExtras Benefits Program," the "American Express Accidental Disability Plan," the "Catastrophic Accident Plan," and the "Accident Protection Plan," as well as (2) any benefits program or memberships offering any type of disability, dismemberment, casualty, emergency accident and sickness medical expense benefit, or travel insurance, marketed or administered by HealthExtras, J.C. Penny Life Insurance Company, Stonebridge Life Insurance Company, or American Express Travel Related Services Company, Inc., among other financial institutions, or (3) that used the trade name "HealthExtras," including any such program endorsed by Christopher Reeve, provided, however, that "Benefits Program" does not include benefits programs or memberships received as an employee of HealthExtras, Inc. or Catalyst Health Solutions, Inc.
Full Answer
Who is the founder of HealthExtras?
HealthExtras grew out of the business of United Payors and United Providers, a preferred provider organization (PPO) and healthcare credit card company founded by Thomas L. Blair in 1995. From 1977 until 1988 Blair was a partner at Jurgovan & Blair, Inc., developing and managing health maintenance organizations. In 1989 he founded America's Health Plan, Inc., and then in 1992 became president of Initial Managers & Investors, Inc., which was eventually folded into United Payors. Serving as his financial manager was his son, David T. Blair, who started his business career working for the management consulting firm of Kelly, Anderson, Petchick and Associates. He left in 1994 to cofound Continued Health Care Benefit Program to market health insurance to people leaving the U.S. military. A year later this business merged with United Payors and Blair became financial manager. He was still in his 20s when he played a significant role in United Payors going public in 1996. Then, in October of that year he took the lead in a marketing research campaign for the development of a supplemental benefits program. In July 1997 the Blairs launched HealthExtras, LLC, along with Edward S. Civera, a 25-year veteran of Coopers & Lybrand who joined United Payors in 1997 as chief operating officer and co-CEO. David Blair became the chief executive officer of HealthExtras.
When did HealthExtras acquire IPM?
In November 2000 HealthExtras acquired International Pharmacy Management, Inc. (IPM) in a $9.2 million stock and cash deal. Based in Birmingham, Alabama, IPM offered pharmacy benefit management services and operated a mail-order pharmacy. Launched in 1995, it now had $30 million in annual sales. Blair commented in a press release, "The IPM acquisition gives our company the opportunity to further expand our reach from direct-to-consumer to direct-to-employer groups by highlighting a benefit which is increasingly valuable in employee recruitment and retention."