Blue Cross Blue Shield will soon begin distributing payments from a $2.67 billion class action settlement tied to allegations that more than 35 of its insurance plans restricted competition in the health insurance market. Eligible class members who filed valid claims by Nov. 5, 2021, are expected to receive notice of their payment status this month.
The settlement in In re: Blue Cross Blue Shield Antitrust Litigation, MDL 2406, was reached after plaintiffs sued in 2013 and accused the insurers of limiting competition, which they said led to higher premiums and fewer choices for consumers. Blue Cross Blue Shield denied the allegations, and the court did not issue a final ruling on the merits before the parties agreed to resolve the dispute through the settlement.
About $1.9 billion remains available for distribution after attorneys’ fees, administrative costs and other expenses are deducted from the settlement fund. Approximately six million claims were submitted, and payments are expected to average around $333 per claimant, though individual amounts will vary depending on the type and duration of coverage.
The settlement covers individuals and insured groups with coverage between Feb. 7, 2008, and Oct. 16, 2020, as well as self-funded accounts with coverage between Sept. 1, 2015, and Oct. 16, 2020. Anyone who did not submit a valid claim by the deadline is not eligible for compensation, making the coming notices the final answer for many claimants who have waited years to learn whether they will receive a bluecross blueshield settlement payment.
The case ends without a court ruling on whether the business practices broke antitrust law, but it does close a long-running fight over how Blue Cross Blue Shield plans competed with one another. For the people who filed on time, the practical question now is not whether the case was settled, but how much will arrive when payments begin this month.