After an appeal effort, the 11th Circuit has upheld the $2.67 billion settlement in the massive class action lawsuit against the Blue Cross Blue Shield Association (BCBSA). See our previous article on this lawsuit and settlement here.
Barring some other unforeseen development, this means employers who previously filed claims for their share of the settlement proceeds should start receiving payments sometime in the first part of 2024. The official BCBS settlement website indicates that claimants should check back in February 2024 for additional updates.
Note: the deadline to file a claim expired November 5, 2021
Employers who receive such settlement proceeds should be aware that a portion of those funds may be plan assets under ERISA if employees contributed towards the cost of the health plan during the time period covered by the settlement, and the employer may need to share the proceeds with health plan participants.
Following the DOL’s guidelines for handling MLR rebates should ensure the employer satisfies its obligations under ERISA with respect to these settlement funds. Click here to read our previously posted blog on the topic of MLR rebates.
IMA will continue to monitor regulator guidance and offer meaningful, practical, timely information.
This material should not be considered as a substitute for legal, tax and/or actuarial advice. Contact the appropriate professional counsel for such matters. These materials are not exhaustive and are subject to possible changes in applicable laws, rules, and regulations and their interpretations.