Millions of Americans are set to receive settlement payments from the health insurer Blue Cross Blue Shield Association following a 2020 settlement agreement resolving antitrust claims.
Those covered by Blue Cross Blue Shield health insurance between February 2008 and October 2020 may be eligible for a resettlement payment, as part of the almost $2.7 billion settlement case.
Around 6 million claims have been submitted nationwide in regard to this case, according to the news outlet KXAN.
Newsweek has contacted Blue Cross Blue Shield Association via email outside of regular working hours for comment.
Why It Matters
Antitrust laws are designed to promote fair competition and prevent monopolistic practices, which can harm consumers, so that markets operate efficiently and a diverse range of products and services can flourish.
According to the KXAN, this litigation has resulted in one of the largest antitrust settlements in the U.S. health care industry.
What To Know
In 2013, a lawsuit was filed against Blue Cross Blue Shield in the United States District Court for the Northern District of Alabama.
In the lawsuit, plaintiffs argued that the association and its companies had violated antitrust laws by entering into an agreement not to compete with each other by allocating specific geographic markets that each sold insurance in.
The lawsuit alleged that these practices were anticompetitive and resulted in financial harm to the provider community and higher costs for subscribers.
The plaintiffs of the case also argued in the lawsuit that the financial impact of these practices fell heavily on health systems and facilities, with their financial impact estimated as being 3.5 times higher, according to the tax firm Blue and Co.
Per the firm, the Illinois Hospital Association said in a statement that estimates calculated that Blue Cross and Blue Shield may have underpaid by as much as 5 to 10 percent.
Blue Cross Blue Shield has denied all allegations of wrongdoing, asserting that its conduct resulted in lower healthcare costs and greater access to care for its customers.
The court has also not decided who is right or wrong, but the $2.67 billion settlement was agreed on October 4, 2020 to end the litigation. Although, this figure represents the total costs, and isn’t the net settlement fund, which is around $1.9 billion. The rest will be used for attorneys’ fees, administration expenses and other costs.
This now means that those who were covered by Blue Cross Blue Shield health insurance between February 2008 and October 2020 may be a class member, and eligible for a resettlement payment.
If you are an individual or insured group (and their employees), or a self-funded account (and their employees) that purchased or were enrolled in a Blue Cross or Blue Shield health insurance during the settlement class period, you may be eligible.
The settlement class period for individuals and insured groups is from February 7, 2008, through October 16, 2020, and for self-funded accounts it is from September 1, 2015 through October 16, 2020.
However, in order to receive a payment, eligible claimants must have filed claims by November 5, 2021.
The amount eligible claimants will receive depends on a number of factors, including the number of valid claims that are filed, the premiums they paid to one or more of the settling defendants during the class period, and whether their insurance was fully insured or self-funded.
If the total payment for any claimant is equal to or less than $5.00, no payment will be made to the claimant.
What People Are Saying
Blue Cross Blue Shield Association said on its website: “We are now reviewing claims and sending claim determination notice emails and postcards to people who filed claims. We are sending claim determination notices on a rolling basis. If you get an email or postcard, please follow the instructions in the email or postcard.”
What Happens Next
Eligible claimants will receive their settlement payments from May 2026.
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