The city of Los Angeles has settled with health insurer Anthem Blue Cross.
Anthem, a subsidiary of WellPoint, has agreed to pay $6 million to the city.
The health insurer was accused of illegally dropping more than 6,000 policy holders.
The settlement is far less than the $1 billion in fines and restitution originally sought.
Officials said the dropped policies affected elderly patients with health costs that topped $100,000.
Anthem denied the allegations and is admitting no fault in the settlement.