Class Action Related to Changes in Retirees’ Health Insurance Plans

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A federal judge granted our client’s motion for summary judgment.

Defense counsel retained Cornerstone Research and Professor Laurence Baker of Stanford University in a class action related to retirees’ health insurance plans. The plaintiffs alleged that the retirees were harmed by a multinational company’s decision to transfer them from employer-sponsored supplemental Medicare insurance to a private healthcare exchange.

Using publicly available healthcare expenditure and utilization data, Professor Baker conducted a simulation that showed the majority of retirees in the company would likely experience lower total expenses.

Professor Baker opined about the common use of private exchanges for supplemental Medicare coverage, their ability to provide a wider range of insurance plans that can better suit the preferences of diverse employees than many employer-sponsored plans with limited choices, and their ability to result in more competitive premiums for workers and employers.

Using publicly available healthcare expenditure and utilization data, Professor Baker conducted a simulation that showed the majority of retirees in the company would likely experience lower total expenses (premiums and out-of-pocket costs). He established that individualized inquiry would be necessary to assess any potential harm to retirees. Professor Baker also responded to the opinions on damages of the opposing expert, revealing calculation inaccuracies and flawed assumptions in the expert’s conclusion of harm to the retirees.

A federal judge granted our client’s motion for summary judgment.


For additional information on this case, contact Maria Salgado.

Case Expert

Laurence C. Baker

Professor of Health Research and Policy,
Chair, Department of Health Research and Policy,
School of Medicine, Stanford University;
Senior Advisor, Cornerstone Research

  • San Francisco

Maria Salgado

Vice President