The $2.67 billion Blue Cross Blue Shield (BCBS) settlement has many people frustrated because of delays in getting their payments. The lawsuit, filed in 2013, claimed BCBS broke antitrust laws by limiting competition, which caused higher costs for customers.
The settlement was finalized in 2020, and all appeals ended by June 2024, but payments have been slow to arrive. This article explains why there are delays and breaks down the process in simple terms.
Background of the BCBS Settlement
The (BCBS settlement) comes from claims that over 35 Blue Cross Blue Shield health insurance plans made deals not to compete with each other. This may have led to higher costs for customers. The lawsuit, called In re: Blue Cross Blue Shield Antitrust Litigation was filed in the U.S.
In October 2020, a settlement was reached in the Northern District of Alabama. It provides compensation for people, insured groups, and self-funded accounts who were part of BCBS plans between February 2008 and October 2020. The settlement also includes changes to BCBS business practices to promote more competition.
The court approved the settlement in August 2022, but things have been moving slowly, causing frustration for those impacted. The delays are mostly because the case is complicated and there are a lot of administrative hurdles.
Complexity of the Class Action
The BCBS class-action settlement is a big process with six million people involved. It has two parts: cash payments (Damages Class) and policy changes (Injunctive Relief Class).
Processing claims involves a lot of paperwork and verification, which can take time, especially with delays like appeals from companies such as Home Depot. Now that the U.S. Supreme Court settled these appeals in June 2024, the settlement is moving forward, but there are still big administrative hurdles to overcome.
Administrative Challenges
Managing a $2.67 billion settlement is a big and detailed process. JND Legal Administration is responsible for reviewing millions of claims and sending payments to those who qualify. To be eligible, people had to submit their claims by November 5, 2021. JND checks the premiums or fees each person paid by comparing them with records from BCBS.
Disputes about premium amounts happen often and usually require claimants to submit extra documents for verification, leading to delays. On top of that, claim decisions are sent out slowly, making the process take even longer.
Verification and Dispute Resolution
The BCBS settlement is taking a long time because of the detailed verification process. Each claimant’s information, like the premiums they paid, needs to be checked against BCBS records. For self funded accounts, it’s even more complicated due to the shorter class period (September 2015 to October 2020).
If someone disagrees with the premium or fee amounts reported, they must provide proof, like payment records or signed statements. These disputes take time to review because the administrator needs to make sure everything is accurate.
No payments will be made until all disputes are resolved, which ensures fairness but also causes delays. Some claimants say their claims have been “in review” for months after they submitted them.
Legal and Financial Complexities
The settlement fund is big, but a lot of money goes to other costs first. After attorney fees (up to $667.5 million), administrative costs, and other expenses, about $1.9 billion is left for the claimants. With six million people sharing this, the average payout will be around $333 per person.
There’s also some disagreement among the lawyers about how much of the attorney fees each firm should get. While this doesn’t affect the payments to claimants, it does make the process slower and more complicated. The court is keeping an eye on things to make sure everything is fair.
The settlement isn’t just about money it also includes changes to BCBS’s BlueCard Program. But making these changes takes time since it involves coordinating with multiple BCBS plans, adding another layer of complexity.
Key Factors Contributing to Delays
The BCBS settlement is taking a long time to process, and here’s why:
- Too Many Claims: Over six million claims need to be checked, which takes a lot of time.
- Disputes: Some people are disputing the premium amounts and need to send in documents, which slows things down.
- Legal Delays: Final approval didn’t happen until June 2024 because of legal appeals, delaying the payout.
- Admin Costs: Fees and expenses are being taken out, so the money has to be carefully divided.
These steps take time, but they’re necessary to make sure everything is accurate.
Payment Distribution Process
After disputes are resolved, payments will be sent using the method chosen by claimants, like direct deposit, Venmo, PayPal, or checks. However, those who selected electronic debit cards have faced delays, with some waiting months for updates.
The settlement website asks for patience, as payments won’t start until all claims are reviewed. Claimants will receive notices by email or mail with details about their payout. These notices began going out in January 2025, but the process is still ongoing.
Many people have shared frustration on forums like Reddit, saying their claims are still “in review.” The administrators have made it clear that payments will only be sent once all disputes are resolved, which could take several more months.
Comparison of Settlement Classes
The BCBS settlement has two groups, each with different timeframes and benefits. The table below explains the main differences:
| Class Type | Eligibility Period | Benefits |
|---|---|---|
| Individuals/Insured Groups | Feb 7, 2008 – Oct 16, 2020 | Cash payments, policy changes |
| Self-Funded Accounts | Sep 1, 2015 – Oct 16, 2020 | Cash payments, policy changes |
This table shows the different timelines and benefits, making it harder to process claims.
Impact on Claimants
The delays have left many claimants frustrated, especially those who filed claims years ago and are still waiting for payouts. While the average payment of $333 can help, it might not feel like much compared to the premiums they’ve paid over the years.
Some people see value in the non monetary benefits, like better competition among BCBS plans, which could lead to lower healthcare costs and more options in the future. But for most, the main concern right now is getting their cash payment.
The lack of a clear timeline for payments only adds to the uncertainty. Claimants should keep an eye on the settlement website for updates and make sure their contact information is up to date.
What Claimants Can Do
To stay updated and avoid delays with your claim, make sure to check the official settlement website (www.bcbssettlement.com). The site has FAQs, lets you check your claim status, and provides contact info if you need help.
If you got a claim notice, read it carefully. If the premium amounts don’t look right, send in any supporting documents as soon as possible to prevent delays. Also, make sure your payment details are correct so you can get your funds without issues.
Summary
The BCBS settlement, finalized in 2020, is taking a while because it involves handling six million claims, verifying premiums, and sorting out disputes. Legal appeals, which wrapped up in June 2024, and administrative tasks have added to the delay.
The settlement administrator is sending out claim notices gradually, but payments won’t begin until all disputes are resolved. If you’re a claimant, stay patient, keep an eye out for updates, and make sure your information is correct to get your share of the $1.9 billion fund.
FAQ
Why haven’t I received my BCBS settlement payment yet? .
Payments are delayed because there are millions of claims to review and some disputes still need to be resolved. The settlement team is reviewing claims and sending payments in stages. You can check the status of your claim on the official settlement website.
What’s causing the delay in the BCBS settlement?
With over six million claims submitted, the process of verifying them, resolving disputes over premium amounts, and completing legal appeals is taking time. Administrative tasks are also contributing to the delay. Payments will be sent once everything is finalized.
How much money will I get?
The average payout is about $333, but the exact amount depends on how much you paid in premiums and if your claim is valid. After fees, $1.9 billion is available for claimants. If your payment is less than $5, it won’t be sent.
How can I check my claim status?
Visit www.bcbssettlement.com to see your claim status. Log in with your details, or contact the settlement administrator at info@BCBSsettlement.com or call (888) 681-1142. Make sure your contact information is up to date.
Should I worry about scams?
Yes, be careful of fake emails or letters. Official communications will come from Notice@BCBSsettlement.com or JND Legal Administration’s Seattle address. If you’re unsure, double-check through the official settlement website.
