Blue Cross Blue Shield will soon begin paying out $2.67 billion to customers follow a years-long lawsuit alleging that the health insurance giant broke 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 options for customers.
Blue Cross Blue Shield has repeatedly denied these claims, and while the court didn’t reach a final verdict, the case was settled. Blue Cross Blue Shield did not immediately respond for comment when contacted by USA TODAY on Tuesday.
Here’s what to know about settlement payments, including who was eligible, how much the payments are expected to be and when payments will be issued.
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Who is eligible for a Blue Cross Blue Shield settlement payment?
Customers who are eligible for a Blue Cross Blue Shield settlement payment needed to file a claim by Nov. 5, 2021. If a customer is eligible and did not file by the deadline, the customer will not receive a payment.
Individuals who were covered by Blue Cross Blue Shield between February 2008 and October 2000 may have been eligible for a payment.
The settlement payment includes two classes: Individual and Insured Group and Self-Funded Account. Individuals and Insured Groups who were customers between Feb. 7, 2008 and Oct. 16, 2020 may have been eligible for a payment and Self-Funded Accounts who were customers between Sept. 1, 2015 and Oct. 16, 2020 may have been eligible.
How much are the settlement payments?
About six million filed claims by the November 2021 deadline, so the payouts are expected to be around $333 per claim.
Though Blue Cross Blue Shield agreed to create a $2.67 billion settlement fund, only $1.9 billion remains available for payout after deducting attorney fees, administration expenses and other costs, according to the Blue Cross Blue Shield Settlement website.
When will settlement payments be issued?
Claim noticed are being emailed to customers on a “rolling basis,” the Blue Cross Blue Shield Settlement website states.
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. The companies offer plans to individuals, families and businesses.
Contributing: Presley Bo Tyler, Shreveport Times and David Bruce, Erie Times-News
Greta Cross is a national trending reporter at USA TODAY. Follow her on X and Instagram @gretalcross. Story idea? Email her at [email protected].
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