There are a few Americans who could be receiving a Blue Cross Blue Shield (BCBS) settlement payment soon. Payments from this $2,67 billion settlement will be filling the pockets of eligible claimants soon. The BCBS settlement agreement is a result of allegations placed against the insurance company for violating antitrust laws that limited market competition.
Although BCBS has not admitted to any wrongdoing, the company agreed to the settlement back in 2020 to avoid further allegations. Citizens need to note the date when payments will be filling their pockets.
Understanding the reason behind the Blue Cross Blue Shield payments
As per the legal battle that started in 2013, a class-action lawsuit was filed against over 35 BCBS companies. According to the allegations, the health insurance providers conspired to compete with each other and thus increased premiums and reduced the plan choices for many Americans.
The court did not issue a final ruling on this matter; however, the parties did reach a $2,67 billion settlement in the year 2020. The settlement is set to compensate groups as well as individuals who have been affected by such unfair practices between February 2008 and October 2020 for insured plans and self-funded accounts from September 2015 and October 2020.
The agreement had been approved in court in 2022. As per the BCBS Settlement website, the decision of the settlement agreement was in favor of avoiding the cost of further litigation and the risk associated with it. All eligible claimants have started receiving payment notices, which means payments will soon be reaching them.
Recapping eligibility criteria and understanding how much payment will be received
All individuals and employers should have filed valid claims by November 5, 2021, and thus far, approximately six million claims have been submitted before the claim filing deadline.
As such, eligible participants should:
- Have been covered by BCBS health insurance or administrative services between February 7, 2008, and October 16, 2020, for insured groups and individuals.
- Have used the BCBS for administrative services between September 1, 2015, and October 16, 2020, for self-funded accounts.
When it comes to payment amounts for this settlement, it’s not the same for all eligible citizens and is based on many factors such as:
- The number of total valid claims.
- The amount of premiums paid to a BCBS company during the respective class period.
- The amount of premiums paid to a BCBS company during this class period.
Although the settlement fee was set at $2,67 billion, the net amount is approximately $1,9 billion once attorney’s fees have been subtracted, and other expenses and administrative costs have been subtracted as well. From the estimated six million claimants, an average of $333 will be paid to each claimant. For claimants whose settlement amounts to less than $5, they will not be issued a payment.
Another health-related settlement agreement that has the claim date set for June 3, 2025, from Botanic Tonics, LLC, due to failure by the brand to warn consumers about the potential health risk posed by kratom that was contained in the Feel Free Wellness Tonic.
When will payments be filling citizens’ pockets?
According to the Blue Cross Blue Shield website, payment notices are sent on a rolling basis. However, the exact date as to when payments will be sent was scheduled for early 2025. Claimants who have not yet received payments need to keep an eye on their email addresses that they used when filing the claim. The same applies to those who qualify for the Nissan class action settlement.
All instructions as to when payments will be issued, either by check, direct deposit, or another method selected during the filing process, have been stipulated. Citizens should visit the official Blue Cross Blue Shield website to stay updated on payment details.
How can consumers interpret this?
For all BCBS members who filed a claim, this payment represents a rare refund from one of the nation’s most powerful health insurance organizations. It might not be a life-changing payment; however, it will be a payment that will matter when it is deposited directly into your bank account or sent via check. Eligible citizens may also be receiving payments from the Imagine360, LLC settlement agreement soon as well.
