The Blue Cross Blue Shield Settlement, one of the largest health insurance settlements in recent history, was finalized and approved on August 9, 2022. The settlement, which totals $2.67 billion, was established in response to claims that Blue Cross Blue Shield (BCBS) violated antitrust laws by limiting competition in the health insurance market. After legal fees, administrative costs, and other expenses, approximately $1.9 billion remains for distribution to eligible claimants.
This article will explore the background, the eligibility for payout, how to check claim status, and when individuals might expect to receive their payments.
Blue Cross Blue Shield Settlement Payment Breakdown
The $1.9 billion Net Settlement Fund is divided into two main categories:
1.Individuals, Insured Groups, and their Employees: $1.78 billion is allocated to this group, which includes individuals and companies that purchased health insurance from BCBS between February 2008 and October 2020.
2.Self-Funded Accounts and their Employees: $120 million is set aside for those in self-funded plans, where employers take on the risk of providing health benefits to employees, but use BCBS for administration services.
It’s important to note that claimants who are entitled to payments below $5.00 will not receive a payout.
When Will I Receive My Blue Cross Blue Shield Settlement Payment?
Though the settlement was finalized in August 2022, payments will only be made after all appeals are resolved. This means the exact timeline for receiving the settlement is contingent upon the legal proceedings, which could take some time.
For eligible claimants, once the process is complete, payments will be disbursed from the Net Settlement Fund, which is estimated to be $1.9 billion. However, the minimum threshold applies—claimants with total payments of $5.00 or less will not receive any payout.
How to Check the Status of Your Blue Cross Blue Shield Settlement Claim?
If you have filed a claim for the Blue Cross Blue Shield Settlement and are awaiting payment, you can check the status of your claim by following these steps:
1.Visit the official BCBS Settlement website: bcbssettlement.com.
2.Look for the “Claim Status” link or a similar section on the homepage.
3.Click on “Check Online Claim Status.”
4.Enter your Unique ID or Claim Number (found on your original settlement form).
5.Click “Check Status” to view the progress of your claim.
This online portal allows claimants to monitor the status of their settlement and receive updates about when payments will be made.
Who is Entitled to Receive the Blue Cross Blue Shield Settlement Payout?
To qualify for the Blue Cross Blue Shield Settlement payout, claimants must meet certain eligibility criteria:
•Eligible Claimants: Individuals or businesses that purchased or received health insurance from Blue Cross Blue Shield between February 2008 and October 2020 are eligible for the payout.
•Class Members: The settlement primarily benefits those affected by the antitrust lawsuit (In re: Blue Cross Blue Shield Antitrust Litigation MDL 2406). If you fall under this category, you are part of the class.
•Valid Claims: Only claimants who submitted valid claims will receive payments. The deadline for filing claims has passed, but those who did file should expect a payout once appeals are finalized.
Background of the Blue Cross Blue Shield Settlement
The settlement was the result of a lawsuit in which the Blue Cross Blue Shield Association and certain individual Blue Plans were accused of violating antitrust laws. Specifically, the lawsuit alleged that BCBS companies conspired to avoid competition with each other, thereby reducing competition in the sale of health insurance and related services. This behavior, according to the plaintiffs, led to higher premiums and limited options for consumers.
While the Settling Defendants deny any wrongdoing, both parties agreed to a settlement to avoid the risks and costs associated with prolonged litigation. The result was the $2.67 billion settlement, which includes both monetary compensation and structural changes within the BCBS Association to promote competition in the health insurance market.
What Happens After the Second Payout?
After the distribution of the $1.9 billion Net Settlement Fund, there will likely be no additional financial compensation. However, as part of the settlement, BCBS agreed to make changes to its business practices aimed at enhancing competition within the health insurance market. This includes adjustments to BCBS Association rules and regulations, which are designed to benefit consumers in the long term.