Blue Cross Blue Shield will soon start sending payments from its $2.67 billion settlement fund, with eligible customers who previously used Blue Cross Blue Shield for health insurance expected to begin receiving money next month.
The payments come from a settlement approved by a federal judge in Alabama in 2020 after a 2013 antitrust lawsuit alleged BCBS companies made backdoor deals not to compete with each other, limiting competition and driving up insurance costs. Blue Cross Blue Shield has denied all allegations of wrongdoing. The settlement fund includes $1.9 billion after legal fees and expenses for subscribers in the settlement class, and individual payment amounts will vary based on coverage and premiums paid.
About 6 million claims have been submitted nationwide, and only people who filed before the November 2021 deadline are eligible for settlement payments. Blue Cross Blue Shield started sending notices in February by email and postcards, a step that signaled the payout phase was nearing. The settlement class covers customers with BCBS insurance plans between Feb. 8, 2008, and Oct. 16, 2020, while a separate group of providers enrolled in administrative services plans who served patients between July 24, 2008, and Oct. 4, 2024, also falls under the agreement, with providers required to submit claims by July 29, 2025.
One reason the payout matters now is that it closes the gap between a case filed more than a decade ago and cash reaching customers who stayed in the class long enough to qualify. The settlement also required Blue Cross Blue Shield to change its business practices to increase opportunities for competition, making the money only part of the cost of ending a long-running fight over how the insurer operated.