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Blue Cross Blue Shield Settlement: $2.67 Billion Payout to 6 Million Subscribers Finally En Route!

February 7, 2025
Smart Money

Blue Cross Blue Shield to Distribute $2.67 Billion to Subscribers Following Antitrust Settlement

In a significant move stemming from a long-standing antitrust lawsuit, Blue Cross Blue Shield (BC/BS) plans to distribute approximately $2.67 billion to around six million subscribers. This settlement, which has been pending for two-and-a-half years, is a result of litigation that dates back to 2013 when more than 35 BC/BS health insurance plans were accused of engaging in anti-competitive practices.

Background of the Lawsuit

The class-action lawsuit alleged that BC/BS plans, including notable players like Highmark, had entered into illegal agreements not to compete amongst themselves. This alleged collusion was said to have restricted competition, ultimately leading to higher prices for consumers. The settlement not only addresses past grievances but also aims to restore fair competition among health insurance providers.

Distribution Details

Each claimant can expect to receive about $333 following the deduction of $667 million in legal fees from the settlement amount. As the distribution process unfolds, claim determination notices are reportedly being emailed to claimants on a rolling basis. However, many individuals, including those who checked their claims, have found that their status remains ‘in review,’ and no definitive date has been provided for when all notices will be sent.

Supreme Court Ruling

The planned fund distribution gained momentum after the U.S. Supreme Court denied an appeal from a settlement class member, David Behenna. Behenna objected to the allocation of $667 million for legal fees, arguing that it was excessively high. Additionally, attorneys for Home Depot filed a challenge to the settlement, asserting that its sweeping terms could hinder future legal actions against BC/BS for competition law violations. The Supreme Court’s decision effectively resolved all pending appeals, paving the way for the distribution of the settlement funds.

Future Implications and Additional Settlements

The settlement’s resolution is a noteworthy development in the ongoing dialogue about competition in the health insurance industry. More than six million individuals had filed claims by the November 2021 deadline and are now positioned to receive compensation as part of this historic settlement.

This is not the only recent legal challenge for BC/BS; the organization has also agreed to pay $2.8 billion to health providers, including hospitals and physicians. This settlement is related to a 2012 class-action lawsuit that accused BC/BS plans of conspiring to curb competition in provider payments.

Conclusion

As Blue Cross Blue Shield prepares to distribute funds, subscribers impacted by the antitrust settlement are encouraged to monitor their claim status closely. The outcome of these legal battles heralds an important chapter in the ongoing efforts to ensure fair competition in the healthcare market, promoting better pricing and services for consumers moving forward.