The long-awaited Blue Cross Blue Shield (BCBS) settlement payments are finally set to be disbursed. More than six million individuals are expected to receive payments, more than two years after BCBS reached a $2.67 billion settlement with policyholders.
According to an official update on the BCBS settlement website, claimants are being notified via email in phases.
The settlement arose from a class-action lawsuit that accused BCBS of violating antitrust laws by limiting competition among its various health insurance plans.
Background of the Blue Cross Blue Shield Settlement
The lawsuit alleged that 35 BCBS health insurance providers conspired to avoid competing with each other, ultimately restricting fair competition in the health insurance market.
Although BCBS denies any wrongdoing, both parties agreed to a settlement to avoid further litigation. A statement on the settlement website clarified: “Instead, Plaintiffs and Settling Defendants have agreed to a Settlement to avoid the risk and cost of further litigation.”
Who Is Eligible to Receive a Payment?
To qualify for a settlement check, individuals had to submit their claims by November 5, 2021. Those eligible include individuals and groups covered by Blue Cross Blue Shield health insurance or administrative services plans between February 2008 and October 2020.
The settlement website has not provided a specific date for when claimants will receive their payment notifications.
How Are Individual Payment Amounts Calculated?
The settlement payments vary based on several factors:
- The number of valid claims submitted.
- The amount of premiums paid to any of the defendants.
- Whether the policyholder had a fully insured or self-funded insurance plan.
The settlement defines the class periods as follows:
| Insurance Type | Settlement Class Period |
|---|---|
| Individuals & Insured Groups | February 7, 2008 – October 16, 2020 |
| Self-Funded Accounts | September 1, 2015 – October 16, 2020 |
Notably, claimants whose total payment is calculated to be $5 or less will not receive a check.
How Much Will Claimants Receive?
Once deductions for attorney’s fees and administrative costs are made, the remaining $1.9 billion of the settlement fund will be distributed to approximately six million eligible claimants.
On average, recipients can expect to receive around $333 per claim. However, individual payouts may differ based on the factors mentioned earlier.
The Blue Cross Blue Shield settlement is one of the largest antitrust lawsuit settlements in recent history. With an average payment of $333 per claimant, eligible recipients should be on the lookout for notifications regarding their disbursement status.
While the exact distribution timeline remains unclear, claimants will receive updates as the process moves forward. Stay informed by checking the official BCBS settlement website for further announcements.
FAQs
When will the BCBS settlement payments be sent?
The settlement website has not provided a specific timeline, but payments will be distributed on a rolling basis.
How will I know if I am receiving a payment?
Claimants will receive notifications via email if they are eligible for a payout.
Can I still file a claim if I missed the deadline?
No. The final deadline to file a claim was November 5, 2021. Late submissions are not being accepted.
