Unexpected windfall from settlement with insurance giant brings relief to millions
Blue Cross Blue Shield recently announced that payments are finally set to be distributed to around 6 million individuals, more than two years after the health insurance company reached a massive $2.67 billion settlement with its subscribers. Notifications regarding the payments are currently being sent out via email in a staggered manner, as indicated in the latest update on the BCBS settlement website.
The roots of this settlement can be traced back to a class action lawsuit that alleged over 35 BCBS health insurance plans had engaged in antitrust violations by colluding not to compete with each other, thereby restricting competition within the health insurance industry. While the defendants have consistently denied any wrongdoing, both parties have decided to reach a settlement in order to avoid the uncertainties and expenses associated with prolonged litigation.
Wondering who will benefit from this financial windfall? To qualify for a payment from the $2.67 billion settlement fund, individuals were required to have filed their claims by November 5, 2021. Potential beneficiaries include subscribers who were under specific Blue Cross Blue Shield health insurance or administrative service plans between February 2008 and October 2020.
As for the calculation of individual payment amounts, they are dependent on several factors, including the number of valid claims submitted, the premiums paid to any of the defendants during one of the two defined class periods, and whether the insurance was fully insured or self-funded. According to the settlement website, the settlement class periods for individuals and insured groups span from February 7, 2008, through October 16, 2020, while for self-funded accounts, it is from September 1, 2015, through October 16, 2020. Claims totaling $5 or less will not receive individual payments.
Following deductions for attorney’s fees and administrative expenses, the net settlement fund stands at approximately $1.9 billion, which will be distributed among an estimated 6 million claimants. On average, each claimant can anticipate receiving checks amounting to around $333.
In other news, Arab-Americans who supported Trump express their reactions to the recent developments in Gaza, while authorities continue the search for a missing plane with 10 passengers onboard off the coast of Alaska. Additionally, Netanyahu has responded to the presence of U.S. soldiers in Gaza as part of Trump’s proposed plan.
