Blue Cross Blue Shield subscriber settlement payment delayed due to appeal. The BCBS settlement alleging antitrust violations was long ago approved and now class members are expecting a payout.
The U.S. Supreme Court ruled the Eleventh Circuit Court of Appeals earlier in June 2024, meaning plaintiffs can expect to be paid sooner rather than later. Class members who have filed and are awaiting BCBS settlement payment can check the expected payment date here.
BCBS Settlement payment date
BCBS settlement class members who filed for settlement early on November 5, 2021, initially expected to be paid after final court approval on August 9, 2022. However, payments from the $2.67 billion settlement fund have been halted because the appeals were filed against BCBS’ approval of the settlement.
On January 26, 2024, the Eleventh Circuit Court of Appeals ruled on an appeal filed against BCBS’s October 2023 settlement. that the administrator will work on the distribution of payments.
According to the settlement’s website, the administrator will send claim determination notices via email to class members with valid claims. The website has not yet updated the claim distribution, however, based on the report, claimants can expect to be paid soon in February 2025 or later.
How do I check the status of my BCBS settlement request?
The BCBS Class Action Settlement can check the status of the claim to find out whether or not their claim has been approved and whether or not they will be paid in the following steps:
- You can visit BCBS’s Subscriber Settlement website at
- Then you should go to the “I would like” tab and click “check request status”.
- On the next page you need to enter your claim number or unique ID in the given box.
- And after you click the Submit button, you can see the status of your BCBS settlement request.
Applicants should note that they can only check the status of applications submitted online.
What is the BCBS settlement about?
An antitrust lawsuit was filed against Blue Cross Blue Shield in federal court in Alabama, which later became a class action. The lawsuit alleges that the defendants violated antitrust laws by choosing not to compete in the health insurance and administration of Commercial Health Benefit products in Puerto Rico and the United States. Limited competition in the market has led to inconvenience for customers.
Competition in the market is very important because it offers choice to customers and leads to quality services. The defendant denied any wrongdoing and said that this practice leads to lower health care costs and access to quality health care.
The defendants agreed to settle the lawsuit with a $2.67 billion settlement fund to compensate customers. In addition to the monetary benefits, the defendants also agreed to make some changes in their strategies to increase competition in the health insurance market.
Who will receive the BCBS settlement payment?
Under the BCBS settlement agreement, people who meet the following eligibility requirements can receive payment:
- You must have BCBS health insurance or an administrative services plan during class.
- You have a self-funded account or are part of a group of policyholders or individuals who have purchased an insurance plan or administrative services;
- The class period for self-funded accounts is September 1, 2015 and October 16, 2020, if they purchased Blue Shield health insurance or administrative services, while the class period for individuals and insured groups is February 2008 and October 2020.
- People who submitted a BCBS settlement claim form before the deadline, November 5, 2021.
Exemption:
- Dependents, persons who are not employed and beneficiaries (minors) are not eligible for settlement.
- People who have opted out of the BCBS settlement using the settlement opt-out form.
How much do you expect to receive as part of the BCBS settlement payment?
As we mentioned, the approved BCBS settlement fund is $2.67 billion, and the fund is being used first to cover the following costs:
- Administrative costs and expenses
- Attorney’s costs and fees
- Class Representative Service Awards.
Under the agreement, the net settlement fund after the administrator has processed the above costs will be $1.9 billion, from which class members with valid claims will receive payment.
The $1.9 billion net settlement fund will be split into two separate funds – (a) $1.78 billion for insured groups and individuals and (b) $120 million for self-funded accounts. The administrator will distribute funds to each class independently.
Individuals who have filed in a timely manner will receive compensation from the Individual Net Settlement Fund. An individual’s settlement payout depends on many factors, such as the number of valid claims, the premium you paid on your health insurance plan, whether your insurance is fully insured or self-funded.
Under the settlement distribution plan, the settlement payout for individuals may vary depending on the factors mentioned, however, if any claimant’s total payout is equal to or less than $5, the administrator will not process a payout for that claimant.
BCBS settlement appeals resolved as of June 2024, class members with valid claims can soon expect payment based on the purchase insurance or administrative plan during the class period and other factors. Claimants can check their BCBS claim status on the settlement website or update their claim payment method changes to receive payment on time.
