More than five years after receiving final court approval, a massive $2.67 billion antitrust class-action settlement involving Blue Cross Blue Shield is finally entering its payout phase. Eligible claimants could begin seeing money deposited into their bank accounts within days, as the distribution process is scheduled to begin in May, according to the settlement website.
Background of the Settlement
The settlement comes from a long-running lawsuit that accused Blue Cross Blue Shield and its affiliated insurers of violating antitrust laws by limiting competition in the health insurance market. Plaintiffs argued that the Blue Cross Blue Shield system was structured to reduce overlap among its regional plans, thereby restricting competition in certain parts of the United States. As a result, the lawsuit claimed it was harder for rival insurance companies to enter those markets. This lack of competition may have reduced consumer choice and contributed to higher healthcare costs for customers in some regions, according to the allegations. Blue Cross Blue Shield has denied any wrongdoing in the case but agreed to settle the lawsuit, with the final agreement approved in October 2020.
Claim Filing and Eligibility
To receive payment, claimants were required to file before the deadline, which closed in November 2021. By the end of the filing period, approximately 6 million claims had been submitted nationwide. Those claims will determine how the settlement funds are distributed, with payout amounts expected to vary depending on factors such as the type of coverage, how long someone was enrolled, and the amount of premiums paid during the eligible period.
Payout Amounts
Eligible participants are expected to receive payments that vary widely based on individual circumstances. Earlier estimates suggested the average payout will fall between $300 and $333 per valid claim, though final amounts will vary. The total settlement fund is reduced to roughly $1.9 billion after legal fees and administrative costs are deducted. From that remaining pool, payments will be calculated based on factors such as how long a claimant was enrolled in a Blue Cross Blue Shield plan and the amount of insurance premiums they paid between 2008 and 2020.
Company Statement
“This settlement ends a long-running legal challenge to the Blue Cross Blue Shield Association license agreements and related rules,” a company spokesperson said in a 2024 statement upon reaching the agreement. “We deny the allegations made in the lawsuit. However, to reach a settlement and put years of litigation behind us, we have agreed to make some operational changes and a monetary payment to the provider class involved in the case.”
“Our members and health care provider partners can rest assured that Blue Cross and Blue Shield companies continue to be strong and ready to deliver exceptional services. We remain committed to providing access to affordable, high-quality care and improving the health of the communities we serve, just as we have for 90 years,” the statement concluded.
