The Blue Cross Blue Shield (BCBS) Association has agreed to pay a settlement of $2.67 billion to settle claims that they engaged in tactics that hurt competition. This settlement is an effort to settle the claims that BCBS intentionally limited the market and raised the costs of insurance for millions of Americans. The goal of the Blue Cross Blue Shield settlement is to give money to people and companies who were affected by these practices, especially those who had BCBS health insurance plans between February 2008 and October 2020. As the $300 payments start to arrive, more information about the deal needs to be looked at so everyone knows what to expect.
Find out more about the case that led to this settlement
According to the case, which was first filed in 2013, BCBS did things that hurt competition and made health insurance rates much higher for people all over the United States. People said that Blue Cross Blue Shield companies split the market between themselves, which made it harder for other companies to compete. It is said that these kinds of actions hurt insurers by making it harder for them to offer cheaper choices.
It took years of court cases to reach the deal that was made in 2025. BCBS has decided to pay a large amount to settle the case without saying they did anything wrong. The deal not only gives money to people who were hurt, but it also says that BCBS needs to change how it does business so that there is more competition and insurance costs go down in the future. The changes are likely to have a general long-term effect on the market for health insurance.
What can people who are qualified for the settlement payments look forward to?
It is said that this settlement will touch more than six million claimants, and the payments are already well under way this year. The average payout for people who are eligible is thought to be around $333, but the exact amount each person gets varies on a number of factors. The total payment is based on the total premiums paid during the class period, which runs from February 2008 to October 2020. Bigger payouts are automatically caused by higher premiums.
Those who made their claims before the deadline of November 5, 2021, will be able to get paid. People should always know what’s going on with their cases. BCBS is currently sending claim determination notices to people who are qualified, so it’s important to check your email and reply right away if the reported premium amounts don’t match up.
After the final review of claims is done, the settlement monies will be sent out. This could take a while, but BCBS has said that payments could be handled in a number of ways, such as by mail, electronic debit cards, or even online services like PayPal or Venmo. As the date of payment gets closer, claimants are told to be smart about which way of payment they prefer.
Other things to think about when it comes to the deal
Getting a payment from the settlement is a big relief for many people, but the money you get may have tax consequences. Following that, settlement funds may be taxed as income, based on the person’s situation. People who don’t know when their settlement payments are due or how the settlement will affect their tax obligations should talk to a tax expert.
Claimants should also know how to file an appeal if there are problems with their claim. BCBS has set up a way for people who have been wrongly denied a claim to dispute those decisions. This lets those people fix the mistakes. Once payments are made, however, there are no more chances to make changes.
The Blue Cross Blue Shield Settlement says that people who missed the deadline to file in November 2021 do not have any choices for making claims after the fact. There is a deal that covers all the claims that people in the class action made before this date.