About 6 million approved claimants are set to receive an average of $333 each from the long-running antitrust class action settlement this month
Blue Cross Blue Shield settlement payments are finally on the way. The health insurance giant is preparing to distribute funds from a $2.67 billion class action settlement resolving claims that it engaged in anticompetitive practices. Payments are expected to begin this month, with eligible class members receiving notice of their payment status. For the approximately six million people who filed valid claims, the wait is nearly over.
How the Blue Cross Blue Shield settlement came about
The litigation dates back to 2013, when plaintiffs filed a class action lawsuit against more than 35 Blue Cross Blue Shield insurance plans. Specifically, the lawsuit alleged that the companies restricted competition within the health insurance market. As a result, plaintiffs claimed consumers faced higher premiums and fewer coverage choices over an extended period.
Blue Cross Blue Shield denied the allegations throughout the proceedings. Furthermore, the court did not issue a final ruling on the merits of the case. Instead, both sides agreed to resolve the dispute through a settlement. An Alabama federal court approved the agreement in 2021, establishing the $2.67 billion fund that is now moving toward distribution.
How much will claimants receive from the Blue Cross Blue Shield settlement
The total settlement fund stands at $2.67 billion. However, after deducting attorneys’ fees, administrative costs and other related expenses, approximately $1.9 billion remains available for distribution to eligible class members. With around six million approved claims, payments are expected to average about $333 per claimant. Individual amounts may vary depending on factors such as the type of coverage held and the duration of that coverage.
Who qualifies for a payment
The Blue Cross Blue Shield settlement covers two main groups of claimants. First, individuals and insured groups who held coverage between Feb. 7, 2008, and Oct. 16, 2020, qualify. Second, self-funded accounts that maintained coverage between Sept. 1, 2015, and Oct. 16, 2020, also fall within the settlement class.
It is important to note, however, that the claim filing deadline was Nov. 5, 2021. Consequently, anyone who did not submit a valid claim by that date is not eligible to receive compensation from this settlement. Those who filed on time should watch for notification about their payment status in the coming weeks.
What the settlement means for consumers
The agreement resolves claims that Blue Cross Blue Shield’s business practices reduced competition among its member companies. While the insurer maintains it did not violate the law, settling allows both sides to avoid the time and expense of continued litigation. Moreover, for millions of consumers who paid premiums during the coverage periods in question, the payments represent a long-awaited resolution to a case that has been moving through the courts for over a decade.
The plaintiffs in the case are represented by attorneys from Hausfeld LLP, Boies Schiller Flexner LLP and Burns Charest LLP. The case is formally known as In re: Blue Cross Blue Shield Antitrust Litigation, MDL 2406, in the U.S. District Court for the Northern District of Alabama.
What to do if you have questions
Top Class Actions is not a settlement administrator or law firm. Therefore, claimants with questions about their specific payment amount or claim status should contact the official settlement administrator directly.
Source: Top Class Actions
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