Blue Cross Blue Shield is beginning to distribute money from a $2.67 billion settlement this month, closing out a legal fight that started in 2013. The class-action lawsuit named more than 30 affiliated Blue Cross Blue Shield companies as defendants, accusing them of coordinating to divide geographic markets among themselves rather than competing for customers. Plaintiffs argued that arrangement violated federal antitrust law and drove up health insurance premiums for policyholders across the country.
The insurers denied those allegations throughout the proceedings and maintained their practices had no effect on what customers paid. The case never went to a verdict. After years of litigation and negotiations, the parties reached a settlement agreement. With all appeals now resolved, the settlement is final and payments are cleared to go out.
Who is in line for a Blue Cross Blue Shield payment
Eligibility is limited to people who already submitted a claim before the filing deadline of Nov. 5, 2021. Anyone who held a Blue Cross or Blue Shield health insurance policy at any point between 2008 and 2020 and filed a valid claim before that cutoff may receive a payment.
Blue Cross Blue Shield has started reviewing all valid claims and is notifying eligible recipients by both email and postcard. People who receive a notice only need to verify that the information is accurate. If everything checks out, no additional action is required to receive payment.
If a claimant believes the premium amounts listed in their notice are wrong, they can dispute the figures by uploading supporting documentation through a link included in the notice, or by mailing the documents directly to the settlement administrator along with their claim number.
How much the settlement actually pays out
The $2.67 billion fund does not distribute in full to policyholders. After attorneys’ fees and administrative costs are deducted, the remaining pool comes to approximately $1.9 billion. That amount gets divided among roughly 6 million policyholders who submitted valid claims.
The anticipated payment per claim is approximately $333, though individual amounts will vary based on the specific premiums each person paid and whether any disputes arise during the review process. Claimants expected to receive $5 or less will not receive any payment. That threshold exists because the cost of processing very small disbursements would exceed the amount being sent.
What to do if you filed a claim
For anyone who submitted a claim before the 2021 deadline, the process from here is fairly straightforward. Watch for incoming notices by email and postal mail over the coming weeks. When a notice arrives, review it carefully to confirm the premium information on file is accurate.
Claimants with questions can reach the settlement hotline at 888-681-1142 or send an email to info@BCBSsettlement.com. Written correspondence goes to Blue Cross Blue Shield Settlement, care of JND Legal Administration, P.O. Box 91390, Seattle, Washington, 98111.
The settlement has been a long time coming. Thirteen years after the original lawsuit was filed, the money is finally moving.
