Blue Cross Blue Shield Class Action Settlement

A settlement has been reached involving antitrust litigation brought against the 36 Blue Cross Blue Shield (BCBS) plans throughout the country.  The litigation involved a class of BCBS subscribers who alleged that BCBS violated antitrust laws when it engaged in what is known as illegal market division. The litigants alleged that BCBS divided the U.S. (and Puerto Rico) into defined geographic markets or service areas. BCBS then allocated Service Areas between the (36) individual BCBS Plans, allowing BCBS Plans to protect themselves from competition. The litigants further alleged this practice resulted in higher premiums and allowed BCBS to have disproportionate market advantages.

The settlement agreement resulted in a $2.7 billion settlement fund…one of the largest in U.S. history.  Of the $2.7 billion, $1.9 billion is specifically earmarked for class member claims, which include:

• – Individual health insurance subscribers (covered between 2/7/2008 – 10/16/2020);
• – Employer group health insurance members (covered between 2/7/2008 – 10/16/2020); and
• – Self-Funded/Administrative Services Only plans (covered between 9/1/2015 – 10/16/2020). Self-Funded/ASO plans are impacted by an additional settlement term, referred to as the “second blue bid” provision. This provision allows affected employers to pursue a second BCBS bid (from one of the BCBS plans outside their state/territory), at their discretion.  Historically, employers have been restricted to requesting/receiving bids only from the BCBS plan available in their defined market area. Second blue bids will likely not be available until the 2^nd quarter of 2022.)

Importantly, the insured (individual and employer group) and self-insured class members include both the plan sponsors AND covered employees (but exclude covered dependents).  Affected potential class members will be notified by mail and/or email in the coming weeks.  Affected employers/subscribers are encouraged to review the settlement terms once received, and evaluate whether or not it makes sense to purse claim(s).

All questions related to the settlement and the class action notices should be directed to the settlement administrator.

There are three ways to contact the settlement administrator:

1. Website: bcbssettlement.com
2. Toll-free number: 888-681-1142
3. Email: info@BCBSsettlement.com

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