Blue Cross Blue Shield is planning to send payments to approximately 6 million people, more than two years after the company agreed to a $2.67 billion settlement with its customers.
Regarding claims, some retailers have questions about expedited processing on the ACH payment. Specifically, “What happens if we do not have a direct deposit account or it’s a returned ACH?”
This settlement arises from a class-action lawsuit that accused over 35 BCBS health insurance plans of breaking antitrust laws, which led to a reduction in competition within the market for health insurance.
The defendants are denying any wrongdoing. “Instead, plaintiffs and resolving defendants have agreed to a settlement in order to avoid the risks and expenses of further legal process,” the update on the settlement website reads.
Who gets a check?
Those who filed their claims by November 5th, 2021, are eligible for a payment from the $2.67 billion settlement fund.
Individuals who had certain Blue Cross Blue Shield health insurance plans or administrative services plans from February 2008 up to October 2020 may potentially be considered part of this class.
It doesn’t specify when notification of payments are scheduled to be sent.
How are the amounts that each person owes calculated?
The amount of money each person gets will depend on how many valid claims were filed, how much in premiums was paid by defendants at some point between two specific time periods, and whether they had fully insured or self-insured coverage.
The settlement period for individuals and groups with insurance started on February 7, 2008, and ended on October 16, 2020,” according to the settlement website. “The settlement period for self-funded accounts began on September 1, 2015, and ended on October 16, 2020.
If the total payment for a claimant is $5 or less, the claimant won’t receive a payment by check.
After accounting for lawyer fees and overhead, the remaining funds in the settlement agreement total approximately $1.9 billion and are expected to be dispersed among around six million individuals. On average, participants may receive checks for approximately $332.
