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Anthem Blue Cross agreed to end midyear policy changes that raise costs for consumers and to reimburse nearly $8.3 million to about 50,000 customers in California as part of a settlement of a class-action lawsuit announced Tuesday.

The settlement resolves two lawsuits filed by policyholders in Los Angeles County Superior Court in 2011 alleging that the state's largest for-profit health insurer increased annual deductibles and other yearly out-of-pocket costs on individual policies in the middle of the year.

Anthem Blue Cross was accused of breach of contract and enga...

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