Blue Cross Blue Shield Settlement Summary:
- Who: Blue Cross Blue Shield will distribute a $2.67 billion class action settlement to its customers.
- Why: Plaintiffs claimed the health insurance providers violated antitrust laws by limiting competition and increasing premiums.
- Where: The settlement was approved in a federal court in Alabama in 2021.
Blue Cross Blue Shield is preparing to initiate payments from a $2.67 billion class action settlement aimed at addressing accusations of anticompetitive behavior.
This case has been ongoing since 2013 when plaintiffs filed against over 35 Blue Cross Blue Shield plans. The lawsuit centers on the claim that these companies have stifled competition in the health insurance market, resulting in higher prices and fewer options for consumers.
Despite these allegations, Blue Cross Blue Shield denied any wrongdoing, and rather than reaching a final court decision, both parties opted for a settlement to resolve the issue.
The agreement created a $2.67 billion settlement fund. After factoring in attorneys’ fees and other costs, about $1.9 billion remains for eligible participants to claim.
Blue Cross Blue Shield Settlement Benefits 6 Million Approved Claimants
Payments are expected to start this month, and class members will be informed about their payment status.
To qualify for compensation, class members needed to submit valid claims by November 5, 2021. Those who missed this deadline will not be able to receive any payments.
The settlement covers two primary groups: individuals and insured groups from February 7, 2008, to October 16, 2020, and self-funded accounts from September 1, 2015, to October 16, 2020.
Approximately 6 million claims have been submitted, with average payouts anticipated to be around $333 per claimant, though actual amounts may differ based on variables like coverage type and duration.
This settlement addresses the allegations that Blue Cross Blue Shield’s practices diminished competition among its member firms. While the settlement brings closure to ongoing litigation, the insurer maintains it did not break any laws.
What do you think about this Blue Cross Blue Shield settlement? Let us know in the comments.
The plaintiffs were supported by several law firms, including Hausfeld LLP and Boies Schiller Flexner LLP.
This case falls under the Blue Cross Blue Shield Antitrust Lawsuit MDL 2406 in the United States District Court for the Northern District of Alabama.
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