WellPoint Inc., the biggest health insurer in the U.S., said today it reached an agreement with more than 700,000 physicians to settle class-action lawsuits over claims of unfair reimbursements to the physicians.

WellPoint said in a press release that it agreed to pay $135 million to physicians and to contribute $5 million to a not-for-profit foundation to promote higher-quality health care.

Also, the company will pay up to $58 million in legal fees, to be determined by the court.

WellPoint expects to incur a pre-tax expense of $103 million or 10 cents a diluted share after tax in the second quarter of 2005 as a result of the agreement. WellPoint has 28.5 million members.

The deal must still be approved by the court. It includes the resolution of two national lawsuits against both pre-merger companies, WellPoint Health Networks Inc. and Anthem, Inc. Anthem completed its $20.88 billion acquisition of WellPoint Health Networks Inc. in December.

One suit involved a nationwide class of physicians against major national managed-care companies. A second physician suit was brought against the Blue Cross Blue Shield Association and Blue Cross and Blue Shield companies.