“Significant Settlement Payouts Await Eligible Participants”
Blue Cross Blue Shield is set to initiate the distribution of a substantial $2.67 billion to clients following a lengthy legal battle that alleged the health insurance behemoth violated antitrust regulations. The legal proceedings commenced in 2013 with the filing of a class-action lawsuit against over 35 Blue Cross Blue Shield health insurance plans. The lawsuit contended that the company engaged in anti-competitive practices, ultimately leading to inflated premiums and limited choices for consumers. Despite Blue Cross Blue Shield’s repeated refutation of these allegations, and no definitive court ruling, the case has been resolved through a settlement. When reached for comment by USA TODAY on Tuesday, the company did not respond promptly.
Here’s what you need to know about the settlement disbursements, including eligibility criteria, projected payment amounts, and the timeline for issuance.
Who is eligible for a Blue Cross Blue Shield settlement payment?
Customers entitled to a Blue Cross Blue Shield settlement payment were required to submit a claim by November 5, 2021. Failure to meet this deadline means the customer will not receive compensation. Individuals who held Blue Cross Blue Shield coverage between February 2008 and October 2020 might qualify for payment. The settlement comprises two categories: Individual and Insured Group, and Self-Funded Account. Individuals and Insured Groups who were policyholders from February 7, 2008, to October 16, 2020, could potentially receive compensation, as well as Self-Funded Accounts with coverage between September 1, 2015, and October 16, 2020.
What are the settlement payments?
With approximately six million claims submitted by the November 2021 cut-off, the anticipated payouts are estimated to be around $333 per claim. Although Blue Cross Blue Shield agreed to establish a $2.67 billion settlement fund, only $1.9 billion remains available for distribution after factoring in legal fees, administrative costs, and other expenses, as per the information on the Blue Cross Blue Shield Settlement website.
When will settlement payments be distributed?
The issuance of claim notifications is being carried out via email to customers on an ongoing basis, according to the Blue Cross Blue Shield Settlement website.
What is the Blue Cross Blue Shield Association?
The Blue Cross Blue Shield Association represents a collective of health insurance firms in the United States. These companies provide insurance plans to individuals, families, and businesses.
Contributing to this article were Presley Bo Tyler from the Shreveport Times and David Bruce from the Erie Times-News. Greta Cross is a trending national reporter at USA TODAY. You can follow her on X and Instagram @gretalcross. For story ideas, feel free to reach out to her via email at gcross@usatoday.com. This story was initially published on USA TODAY: Blue Cross Blue Shield $2.67B settlement payments: Will you receive one?
