Blue Cross Blue Shield to Pay Multi-Billion-Dollar Settlement — See If You Qualify

The health insurance company Blue Cross Blue Shield is finally set to make payments to consumers from the multi-billion-dollar class action lawsuit that was settled more than five years ago.

According to The Hill, the class action lawsuit claimed that the health insurance company limited competition for consumers' health insurance options and drove up customer costs. Blue Cross Blue Shield claimed that they'd done nothing wrong. However, they agreed to a settlement back in 2020.

Blue Cross Blue Shield announced that the company would be settling the payments following all court appeals being resolved.

"The Court resolved all appeals, and the Settlement is final," reads the statement. "We are now reviewing claims and sending claim determination notice emails and postcards to people who filed claims. We are sending claim determination notices on a rolling basis. If you get an email or postcard, please follow the instructions in the email or postcard."

Approximately 6 million claims were against Blue Cross Blue Shield before the deadline of November 2021. Customers who were covered between February of 2008 and October of 2020 were eligible to file a claim in the class action lawsuit against Blue Cross Blue Shield. The settlement is $2.67 billion, but a large portion will go toward legal and administrative fees first, and approximately. $1.9 billion will be divided up and paid out to eligible customers.

Blue Cross Blue Shield customers are set to receive their payments beginning in May of 2026, according to the settlement website.

"The initial distribution of payments to Damages Class Members with valid claims will begin in May 2026," the site reads. "To receive a payment, you must have filed a claim by November 5, 2021."

"The Settlement will establish a $2.67 billion Settlement Fund," it continued. "Settling Defendants will also agree to make changes in the way they do business that Plaintiffs believe will increase the opportunities for competition in the market for health insurance."

Eligible customers will be paid either by an electric debit card or another form of payment requested when filling out the claim.

"Even if you did not request to be paid by electronic debit card on your claim form, you may do so now by clicking the button in the notice you received,' the site reads. "Requesting to be paid by electronic card is optional. If you do not request to be paid by electronic card, you will be paid by the method requested on your claim form."

Customers whose payment is less than $5 will receive no payment, despite being eligible, and the payment amount will depend on several factors, such as the amount of premiums the customer paid.

"Individual payment amounts depend on several factors, including, among other things, the number of valid claims that are filed, the premiums you paid to one or more of the Settling Defendants during the class period, and whether your insurance was fully insured or self-funded."

The company also promised to change their business practices in the settlement to allow for fair competition.