Blue Cross Blue Shield will soon begin distributing settlement payments stemming from a $2.67 billion class action lawsuit that accuses the health insurance giant of breaking 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 choices for customers.
Blue Cross Blue Shield has repeatedly denied these claims, and although the court did not reach a final decision, the case was settled.
Here’s what you need to know about the settlement payments, including who was eligible, how much is expected to be paid and when the payments will be released.
Who is eligible for Blue Cross Blue Shield settlement payments?
Customers who are eligible for the Blue Cross Blue Shield settlement payment must file a claim by November 5, 2021. If a customer is eligible and does not file a claim by the deadline, the customer will not receive payment.
Settlement payments include two classes: individual and insured group and self-funded account. Individuals and insured groups who were customers between February 7, 2008 and October 16, 2020 may be eligible for payments, and self-funded accounts that were customers between September 1, 2015 and October 16, 2020 may be eligible.
How much are the settlement payments?
Nearly six million people filed claims by the November 2021 deadline, so payouts per claim are expected to be about $333.
Although Blue Cross Blue Shield has agreed to create a $2.67 billion settlement fund, only $1.9 billion remains available for payouts after deducting attorney fees, administration expenses and other costs, according to the Blue Cross Blue Shield settlement website.
When will settlement payments be released?
According to the settlement website, initial distribution of payments will begin in May 2026. 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. Companies offer plans for individuals, families, and businesses.
Contributing: Presley Bo Tyler, Shreveport Times; David Bruce, Erie Times-News. Greta Cross and Gabe Howery are national trending news reporters at USA TODAY.