Back in 2013 the Blue Cross Blue Shield (BCBS) came into the limelight for a very bad reason, a lawsuit was filed against them over claims that they were engaging in unfair practices that reduced competition and drove up insurance costs. The company was accused of violating antitrust laws by limiting market competition, which led to higher premiums, and while BCBS never admitted to doing anything wrong, they ultimately decided to settle rather than continue fighting the legal battle.
While the case never reached a final ruling in court, the settlement was a way to compensate businesses and individuals who may have paid inflated insurance costs due to BCBS’s market restrictions. As part of the agreement, BCBS was required to change its business practices to allow for more competition among its independently operated companies and, of course, to give some restitution to those affected by the company’s actions.
The BCBS settlement details
Since the case ran a bit long, there were some unavoidable associated costs that were taken out of the final settlement amount, which was a total of $2.67 billion settlement, but after accounting for legal and administrative fees, about $1.9 billion was left for claimants. Those eligible had to file their claims by the November 2021 deadline, but even though the payments were initially scheduled for 2024, the process has regrettably taken some time to ensure that those affected get the promised amount.
The process has taken so long because of a few factors, while claimants had to file by November 5, 2021 the original case did not wrap up until a few months into 2022 as the claims had to be verified. After this original case concluded, the appeals process started, but that delayed the payments even more, and only when the appeals were exhausted could claimants begin to be notified of the settlement distribution.
To that end, letters have been sent to those eligible to claim a part of the money with details about the amount (an average payment of around $333 per person) and any other relevant information they may need to complete the process. For those who have questions or concerns, the settlement has a dedicated BCBS settlement website for official updates and claimants can use it to ensure that they are up to date in the proceedings and that they know the details of the settlement claim. They can also use it to update their address should they have moved from the time they originally filed a claim, as this will be important to receive any official communications or checks.
With payouts being processed, scammers may try to take advantage. Be cautious of emails promising faster payments or requesting personal details and remember that the only legitimate source of information is the official BCBS settlement website, we are especially vulnerable to those preying on us when we are expecting to be contacted.
As with every settlement, not every customer is entitled to compensation, only those that have deemed to be negatively affected by the actions of the company in the timeframe covered by the suit. In this case, to claim a potion of the settlement, a person must have had a BCBS health insurance policy anytime between February 7, 2008, and October 16, 2020, and filed a claim before November 2021. If that criteria has been met by the person, the money should be showing up in your bank account or your mailbox sooner rather than later, but do remember to check regularly the official Blue Cross Blue Shield Settlement website to stay informed on the timeline. If you have not received any communication related to the case, your data might be incomplete or there might be a mistake, so contact the people responsible for the suit to make sure everything is up to date.