Blue Cross Blue Shield will soon begin distributing settlement payments stemming from a $2.67 billion class action lawsuit alleging the health insurance giant broke antitrust laws.
The litigation began in 2013, when a class action lawsuit was filed against more than 35 Blue Cross Blue Shield health insurance plans. The lawsuit claims the company broke antitrust laws by limiting market competition, resulting in increased premiums and reduced options for customers.
Blue Cross Blue Shield has repeatedly denied these claims, and while the court didn’t reach a final verdict, the case was settled.
Here’s what to know about settlement payments, including who was eligible, how much the payments are expected to be, and when payments will be issued.
Who Is Eligible for a Blue Cross Blue Shield Settlement Payment?
Customers who are eligible for a Blue Cross Blue Shield settlement payment needed to file a claim by Nov. 5, 2021. If a customer is eligible and did not file by the deadline, the customer will not receive a payment.
The settlement payment includes two classes: Individual and Insured Group and Self-Funded Account. Individuals and Insured Groups who were customers between Feb. 7, 2008 and Oct. 16, 2020 may have been eligible for a payment, and Self-Funded Accounts who were customers between Sept. 1, 2015 and Oct. 16, 2020 may have been eligible.
How Much Are the Settlement Payments?
About six million people filed claims by the November 2021 deadline, so the payouts are expected to be around $333 per claim.
Though Blue Cross Blue Shield agreed to create a $2.67 billion settlement fund, only $1.9 billion remains available for payout after deducting attorney fees, administration expenses and other costs, according to the Blue Cross Blue Shield Settlement website.
When Will Settlement Payments Be Issued?
The initial distribution of payments will begin in May 2026, according to the settlement website. Claim notices should have already been emailed to customers.
What Is the Blue Cross Blue Shield Association?
The Blue Cross Blue Shield Association is an association of health insurance companies in the United States. The companies offer plans to individuals, families and businesses.
Contributing: Presley Bo Tyler, Shreveport Times; David Bruce, Erie Times-News. Greta Cross and Gabe Hauari are national trending news reporters at USA TODAY.
