Blue Cross Blue Shield is preparing to distribute $2.67 billion in settlement payments to customers following a long-running antitrust lawsuit. This case, which dates back to 2013, alleged that the insurer violated competition laws—resulting in higher premiums and fewer plan choices for millions of Americans.
Although the company denied any wrongdoing, a settlement was reached without a final court ruling. Here’s a breakdown of who’s eligible for payment, how much individuals may receive, and when payouts are expected.
Why Blue Cross Blue Shield Is Paying Out $2.67 Billion
The class-action lawsuit accused Blue Cross Blue Shield (BCBS) and its affiliated plans of conspiring to limit competition in the health insurance market. The plaintiffs claimed that BCBS companies agreed not to compete with one another in specific geographic areas, leading to inflated costs for customers.
This conduct, if proven in court, would have violated U.S. antitrust laws designed to promote competition and prevent monopolistic practices. Though BCBS has consistently denied these claims, they agreed to a settlement in 2020 to resolve the dispute.
Who Is Eligible for a Settlement Payment?
To receive compensation from the settlement, individuals or entities had to file a claim by November 5, 2021. Those who missed this deadline are not eligible for a payout.
The eligibility was divided into two main groups:
| Group | Coverage Period |
|---|---|
| Individuals & Insured Groups | Feb. 7, 2008 – Oct. 16, 2020 |
| Self-Funded Accounts | Sept. 1, 2015 – Oct. 16, 2020 |
Millions of current and former customers may have qualified, provided they had health coverage through a BCBS company during these timeframes and submitted a valid claim on time.
How Much Are the Settlement Payments?
Roughly 6 million claims were filed by the deadline. After legal fees and administrative costs, about $1.9 billion remains from the original $2.67 billion fund for distribution.
That means the average payout is estimated to be around $333 per claim. However, actual payment amounts may vary based on the type of plan and length of coverage.
When Will Payments Be Sent Out?
According to the official BCBS settlement website, payments are being processed and sent out on a rolling basis. This means not everyone will receive funds at the same time. Claimants should monitor their email and physical mail for payment notifications or updates from the settlement administrator.
Payouts may come as a check or electronic payment, depending on the method selected during the claims process.
What Is the Blue Cross Blue Shield Association?
The Blue Cross Blue Shield Association (BCBSA) is a national federation of 34 independent and locally operated health insurance companies. Together, these companies provide coverage to over 100 million Americans, offering plans for individuals, families, and businesses across the country.
While they operate under a common brand, each BCBS plan is a separate company that typically serves a specific geographic area.
This landmark settlement marks one of the largest health insurance antitrust resolutions in U.S. history. Although BCBS has not admitted fault, the financial agreement is intended to compensate affected customers and resolve years of litigation.
FAQs:
Can I still file a claim to receive money?
No. The deadline to file a claim was November 5, 2021. Late submissions are not accepted.
How will I receive the settlement payment?
Payments will be issued either by check or electronically, depending on your selection when filing.
Will everyone get $333?
Not exactly. That figure is an average. The actual amount depends on plan type, duration of coverage, and how many total valid claims were filed.
