Blue Cross Blue Shield starts $2.67B Blue Cross Antitrust Settlement Payments
Blue Cross Blue Shield will begin blue cross antitrust settlement payments this month from a $2.67 billion class action settlement. Eligible class members who filed valid claims by Nov. 5, 2021 will receive notice of their payment status as money starts going out.
MDL 2406 settlement fund
The settlement resolves In re: Blue Cross Blue Shield Antitrust Litigation, MDL 2406, in the U.S. District Court for the Northern District of Alabama. Plaintiffs filed the case in 2013 against more than 35 Blue Cross Blue Shield insurance plans, alleging the companies restricted competition in the health insurance market and 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 settle. The deal created a $2.67 billion fund, with about $1.9 billion still available for distribution after deductions for attorneys’ fees, administrative costs and other expenses.
Nov. 5, 2021 claim deadline
The deadline shaped who gets paid. Class members had to submit a valid claim by Nov. 5, 2021 to qualify for compensation, and people who missed that date are not eligible for a payout. The settlement covers individuals and insured groups with coverage between Feb. 7, 2008, and Oct. 16, 2020, along with self-funded accounts that had coverage between Sept. 1, 2015, and Oct. 16, 2020.
About six million claims were submitted, and payments are expected to average around $333 per claimant. Individual amounts will vary depending on the type and duration of coverage, so the number on any one check will depend on the record tied to that claim.
Blue Cross Blue Shield claims
For claimants, the immediate step is waiting for notice of payment status as distribution begins this month. The practical line is simple: people who filed on time may receive money from the settlement fund, while those who did not meet the Nov. 5, 2021 deadline will not.
