The Blue Cross Blue Shield (BCBS) $2.67 billion settlement is one of the largest class-action settlements in U.S. history, resolving antitrust allegations against the insurer. If you were covered under a BCBS health insurance plan during specific periods, you may be eligible for a payout. Here’s everything you need to know about the settlement, including eligibility, payment amounts, and timelines.
Overview of the BCBS Settlement
The BCBS settlement stems from a class-action lawsuit alleging that the insurer violated antitrust laws by engaging in practices that restricted competition and inflated insurance costs. While BCBS denied any wrongdoing, the company agreed to a $2.67 billion settlement to resolve the claims. The settlement benefits individuals and businesses who were covered under BCBS health insurance plans during specific periods.
Eligibility Criteria
Fully Insured Plans
- You are eligible if you were covered under a fully insured BCBS plan between February 7, 2008, and October 16, 2020.
Self-Funded Plans
- You are eligible if you were covered under a self-funded BCBS plan between September 1, 2015, and October 16, 2020.
Exclusions
- Dependents, non-employees, and minors are not eligible for payouts.
Settlement Fund Breakdown
Total Settlement Amount
- The total settlement fund is $2.67 billion.
Allocation to Claimants
- $1.9billion is allocated for payouts to claimants after deductions for legal fees 667.5 million) and administrative costs ($100 million).
- Fully Insured Claimants: 93.5% (~$1.78 billion) of the payout fund.
- Self-Funded Claimants: 6.5% (~$120 million) of the payout fund.
Payout Estimates
Average Payment
- The average payout is estimated to be $333 per claimant for approximately 6 million approved claims.
- Actual amounts vary based on:
- Premiums paid during the class period.
- Type of plan (fully insured vs. self-funded).
- Total number of valid claims.
Minimum Payout Rule
- Claims under $5 will not receive payment.
Payment Timeline
When Payments Begin
- Payments are scheduled to begin in February 2025 after all final appeals were resolved in June 2024.
Claim Deadline
- The deadline to file claims was November 5, 2021. No new claims are being accepted.
How Payments Are Distributed
Payments will be distributed through:
- Venmo
- PayPal
- Prepaid card
- Check
Claimants will receive notifications via email on a rolling basis.
Legal Background of the Settlement
The lawsuit alleged that BCBS engaged in anticompetitive practices, including:
- Restricting competition among BCBS affiliates.
- Inflating insurance costs for policyholders.
While BCBS denied these allegations, the company agreed to the settlement to avoid the risks and costs of prolonged litigation.
How to Check Your Claim Status
To check the status of your claim:
- Visit the official settlement website: bcbssettlement.com.
- Enter your Claim Number or Unique ID.
Important Notes
- Taxable Income: Settlement payments are considered taxable income in most cases.
- Updates: For the latest information, visit the official settlement website or review court-approved documents.
