It seems as if many Americans are still interested in the Blue Cross Blue Shield (BCBS) settlement, and when the payment date will be for one of the biggest health insurance settlements in U.S. history. The good news is that BCBS payments have already started getting distributed from the initial $2,67 billion antitrust settlement. Although the class action lawsuit started back in 2013, it seems like the majority of the 6 million eligible claimants will receive their payments only now. BCBS has denied all wrongdoing after being accused of violating federal antitrust laws and limiting competition by inflating customer premiums.
Understanding the eligibility requirements for this settlement
In order to qualify for this settlement payment, certain eligibility criteria needed to be met, and eligible claimants should have already filed a claim by November 5, 2021. Eligibility was determined according to two groups:
- Individuals or insured groups covered by the BCBS health insurance plan between February 7, 2028, and October 16, 2020.
- Self-funded accounts where employers had funded their own health plans but used BCBS administrative services and were covered from September 1, 2015, and October 16, 2020.
Whoever was unable to file by the deadline has been excluded from receiving payment from the settlement agreement, even if they met the necessary coverage criteria. As per this settlement agreement, customers who purchased insurance directly (through individual plans) as well as those who received coverage via an employer-sponsored group insurance were deemed eligible to submit a claim. To be valid, the claim had to have been filed through the official BCBS settlement website.
How much can claimants expect to receive from this settlement agreement?
Although the initial settlement amount was $2,67 billion, after the deduction of attorney fees and other administrative expenses, only $1,9 billion remains that will be distributed among the approximate 6 million claimants who met the claim filing deadline.
As it stands, the average payout per claimant is $333, however, the exact amount that each claimant will receive will be based on:
- Total in terms of premiums paid during the class period.
- The number of valid claims received.
- The type of insurance coverage (self-funded or fully insured).
For all claimants who are due to receive a payment of $5 or less, the agreement stipulates that no payment will be issued. This means that customers who had insurance coverage for a longer period of time or those who ended up paying higher premiums would receive a much larger portion of the fund.
BCBS has still not admitted to any wrongdoing, however, the settlement is in favor of offering some sort of compensation to the customers who were affected by these inflated premiums and anticompetitive practices. An upcoming payment can be expected for all the people on the list of eligible claimants.
When can claimants receive payments?
While there are many questions regarding when payments will be filling the pockets of eligible citizens, there is no confirmed payment date just yet. All payments are said to be issued on a rolling basis. Eligible claimants will receive notices via email to indicate when payments are being processed and when the payment will be paid out per phase or group.
There is no specific payment timeline available for each eligible claimant’s payment, however, claimants will need to keep checking their emails as payment distribution started earlier this year. Although payments started rolling out only two years after the initial settlement agreement, payments will surely be received by all eligible claimants once notifications have been received.
The payment method differs for each claimant and is based on the payment option selected, which could be mailed checks, direct deposits, or digital payment platforms. The Blue Cross Blue Shield Settlement website must be visited regularly, as it remains the best source of information for all claimants.
