Eagan, Minn. (May 7, 2008) —Ten years ago this week, Blue Cross and Blue Shield of Minnesota (Blue Cross) became the first private insurance company to score a legal victory against the tobacco industry. On May 8, 1998, Blue Cross and the State of Minnesota agreed to settlement terms with the tobacco industry, ending a four-month trial that had national and even international implications. The benefits of this settlement are clear today, as Minnesota enjoys a lower smoking rate than the national average.

The historic lawsuit and trial received worldwide attention for exposing the tobacco industry’s long history of deceptive marketing, advertising and research, ultimately forcing the industry to change its business practices. In addition to Blue Cross’ monetary award of $469 million and the State’s award of $6.1 billion, the settlement required tobacco companies to stop a number of practices in Minnesota. The restrictions, which were quickly adopted by 46 other states in a subsequent group settlement, included:

• not marketing cigarettes to children;
• not advertising cigarettes on billboards, buses or transit areas;
• not distributing or selling tobacco-related merchandise; and
• not receiving placement fees for cigarette products in movies.

Moreover, the Minnesota settlement closed the Council for Tobacco Research, an industry trade group accused of controlling unfavorable tobacco research. The court also ordered the tobacco companies to provide additional financial reporting of government lobbying expenditures and to make public millions of secret tobacco company documents discovered during the lawsuit.

“Others have said our decision to sue the industry was the greatest act of corporate courage they had ever seen. Courageous or not, it was the right thing to do,” said Dr. Mark Banks, CEO, Blue Cross. “The lawsuit paved the way for significant public health achievements and will continue to have a profound impact on the health of our members and all Minnesotans for years to come.”

Ten years later, the victory over the tobacco industry is still giving back to Minnesotans. Blue Cross continues to commit its settlement money to create lasting change that improves health for all Minnesotans. In 2006, Blue Cross launched Prevention Minnesota, a long-term initiative to reduce heart disease and cancers by tackling their root causes – tobacco use, secondhand smoke, physical inactivity and unhealthy eating. Today Blue Cross continues to allocate settlement dollars each year for work that reduces the harms of tobacco across the state. Through collaborations with other health organizations, Blue Cross helped drive such changes as the statewide smoke-free law and the price increase on cigarettes. These policies are aimed at supporting adults who want to quit smoking and keeping young people from ever starting to use tobacco.

Despite such positive changes, tobacco use continues to be a major health concern. “With approximately 600,000 adult smokers in Minnesota and nearly $2 billion spent in our state annually to treat health conditions caused by tobacco use, we can’t rest on our laurels,” said Dr. Marc Manley, Blue Cross’ vice president and medical director for population health. “The tobacco industry is still very powerful. As long as the industry continues to create new products and new marketing tactics that adapt to changing social norms, there’s more work for us to do. We remain committed to connecting people to help so they can quit smoking, building workplaces and communities that support healthier lifestyles, and focusing on those who are hardest hit.”

Blue Cross will mark the tobacco settlement anniversary by hosting a day-long Prevention Minnesota conference at the Minneapolis Marriott Southwest in Minnetonka on May 8. For more information on Blue Cross’ Prevention Minnesota initiative, visit www.bluecrossmn.com/preventionminnesota.

Blue Cross and Blue Shield of Minnesota, with headquarters in the St. Paul suburb of Eagan, was chartered in 1933 as Minnesota’s first health plan and continues to carry out its charter mission today: to promote a wider, more economical and timely availability of health services for the people of Minnesota. A nonprofit, taxable organization, Blue Cross is the largest health plan based in Minnesota, covering 2.9 million members in Minnesota and nationally through its health plans or plans administered by its affiliated companies. Blue Cross and Blue Shield of Minnesota is an independent licensee of the Blue Cross and Blue Shield Association, headquartered in Chicago. Go to www.bluecrossmn.com to learn more about Blue Cross and Blue Shield of Minnesota.

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Karen Lyons
Phone: (651) 662-1415

Pam Lux
Phone: (651) 662-3959