Blue Cross Blue Shield $2.67B class action settlement payments set to begin

Blue Cross Blue Shield settlement overview:

• Who: Blue Cross Blue Shield is set to distribute a $2.67 billion class action settlement with customers.
• Why: Plaintiffs claimed the health insurer violated antitrust laws by limiting competition and increasing premiums.
• Where: The class action settlement was approved in Alabama federal court in 2021.

Blue Cross Blue Shield will soon begin distributing payments from a $2.67 billion class action settlement resolving claims that the health insurance provider engaged in anticompetitive practices.

The long-running litigation began in 2013, when plaintiffs filed a class action lawsuit against more than 35 Blue Cross Blue Shield insurance plans. The lawsuit claimed the companies restricted competition within the health insurance market, which allegedly 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 of the claims. Instead, the parties agreed to resolve the dispute through a settlement.

The agreement established a $2.67 billion settlement fund. However, after deducting attorneys’ fees, administrative costs and other expenses, about $1.9 billion remains available for distribution to eligible class members.

Blue Cross Blue Shield settlement benefits about 6M approved claimants

Settlement payments are expected to begin distribution this month, with eligible class members receiving notice of their payment status.

To qualify for a payout, class members were required to submit a valid claim by Nov. 5, 2021. Individuals who did not file a claim by the deadline are not eligible to receive compensation.

The settlement includes two main groups: individuals and insured groups who had coverage between Feb. 7, 2008, and Oct. 16, 2020, and self-funded accounts that had coverage between Sept. 1, 2015, and Oct. 16, 2020.

Approximately six million claims were submitted, and payments are expected to average around $333 per claimant, though individual amounts may vary depending on factors such as the type and duration of coverage.

The settlement resolves claims that Blue Cross Blue Shield’s business practices reduced competition among its member companies. While the insurer maintains it did not violate the law, the agreement allows both sides to avoid continued litigation.

What do you think about this Blue Cross Blue Shield settlement? Let us know in the comments.

The plaintiffs are represented by Michael Hausfeld, Megan Jones and Swathi Bojedla of Hausfeld LLP; David Boies, Hamish Hume and Jonathan Shaw of Boies Schiller Flexner LLP; and Warren Burns and Christopher Cormier of Burns Charest LLP.

The Blue Cross Blue Shield settlement is In re: Blue Cross Blue Shield Antitrust Litigation, MDL 2406, in the U.S. District Court for the Northern District of Alabama.

Read About More Class Action Lawsuits & Class Action Settlements:

• Thermos recalls 8.2M food jars and beverage bottles over serious injury risks
• DocketWise class action claims ‘utter failure’ to protect information led to data breach
• Hyundai class action alleges Kia ICCU design defect causes power loss
• GM class action alleges defective 10-speed transmissions cause shifting issues, power loss