On August 9, 2022, an Alabama federal court granted final approval to this settlement, which will pay $2.67 billion to plaintiffs (including $626.5 million in attorney’s fees and $40.9 million for litigation costs and expenses).
The terms of the final settlement requires BCBS to change certain business practices that have the result of reducing competition between BCBS plans. Specifically, the settlement terms require the BCBS Association and its member plans to:
- Allow insurers to expand their lines of non-BCBS business in each other’s market, which will increase opportunities for competition in the health insurance market; and
- Allow BCBS insurers to compete with one another for large contracts by permitting qualified national self-funded accounts to request a second bid for coverage from a member plan of their choice (“Second Blue Bid”).
Although the BCBS website indicates that there is no distribution timeline available, the terms of the settlement indicate that the money is to be paid within 30 calendar days to authorized claimants.
The final settlement and awarding of attorney’s fees/expenses may be found here: https://www.bcbssettlement.com/documents.
Claimants who have their unique claim ID or claim number may check the status of their claims here: https://secure.bcbssettlement.com/claimstatus.
More information on this settlement, including background on the settlement and information on the various settlement classes and deadlines, may be found by clicking here.
Written by: Michelle Cammayo
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.