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Blue Cross Blue Shield Antitrust Settlement

Dear Valued Client:

BCBS organizations nationwide have been in a protracted antitrust lawsuit which has recently been settled pending court approval.  We are sending this information out to all clients, not just those with BCBS, since the timeframe for having coverage goes back as far as 2008. To assist customers, we have prepared the following summary of the Settlement:

What it is:

  • Class action suit against BCBS who are alleged to have agreed not to compete, or limit competition, against other BCBS organizations

  • Proposed $2.67B settlement fund (not yet approved); if approved, $1.9B net settlement fund

  • Eligible classes include individuals and groups, both fully insured and self-funded, during the following time period:

    • Fully insured groups – February 7, 2008 – present

    • Self-funded groups – September 1, 2015 – present

How will payment be determined:

  • Total premiums paid during the settlement class period by fully insured authorized claimants / DIVIDED BY total premiums paid during the settlement class period by ALL fully insured authorized claimants who SUBMIT claims * MULTIPLIED BY total dollars in the fully insured net settlement fund = EQUALS claim payment received by each claimant

  • Said another way – Employer premium paid / Total of premium paid by all claimants x $1.9B = settlement amount

  • Employer’s payment would be reduced by any individual covered by their plan who files an individual claim.

Key dates:

  • November 30, 2020 - Preliminary approval given to the settlement

  • Notice Date (notices sent to claimants by BCBS) – Spring 2021

  • Objection Deadline – July 28, 2021

  • Exclusion “opt out” Deadline – July 28, 2021 (This allows claimants to drop out of the settlement and directly sue BCBS.)

  • October 20, 2021 – Fairness hearing

  • Claim Filing Deadline – November 5, 2021

Of note:

  • Counsel representing the CIAB (Council of Insurance Agents & Brokers) offered guidance that it is not yet known whether employers/companies will file claims on behalf of their plan participants or if individuals will choose to/have to do so on their own. Their perspective is that employers will do so on employees’ behalf. However, in our opinion, the onus would be on the employer to determine the eligible population during the timeframe mentioned above (Sept. 1, 2015 – present).

Additional thoughts:

  • BCBS is advising interested parties to register for information and updates @ https://registration.bcbssettlement.com

  • Some employer groups have received emails about this settlement from law firms. The email being received by clients and employees is a solicitation from an independent firm, offering to represent you in the suit, for a portion of what’s recovered (no information provided as to what their portion would be). There is no obligation to engage with them.

  • Our office will monitor the available information and advise our clients specific to the key dates once they are provided. We also encourage you to seek input from your counsel regarding the best course of action for your organization.

For more information, please go to the BCBS Settlement Website - https://www.bcbssettlement.com/.

Please let me know if you have any questions.

Matthew T. Hollister
CEO

Matthew Hollister