"Blue Cross Blue Shield is set to begin issuing nearly $2 billion in payouts to claimants in a long-running class action lawsuit. The payments are expected to begin this month and could see individuals receiving checks worth hundreds of dollars. The settlement payout is the culmination of a nearly 14-year legal battle between Blue Cross Blue Shield and its subscribers."
"Back in 2012, individuals who subscribed to policies from various BCBS health insurers sued Blue Cross Blue Shield, alleging that the company engaged in anti-competitive practices that led to higher health insurance premiums. Specifically, subscribers alleged that Blue Cross Blue Shield got BCBS insurers to agree not to offer their services in overlapping jurisdictions, limiting competition. And since more competition usually lowers prices, that kept premiums higher than they otherwise would have been."
"By 2020, Blue Cross Blue Shield agreed to settle the claims for $2.67 billion, rather than incur additional legal costs and a potentially more costly outcome if the case went to trial. It's important to note, however, that no verdict was ever rendered against Blue Cross Blue Shield, and the company has denied any wrongdoing. After 2020, several objections were made to the settlement, but following further court proceedings, the settlement was upheld."
Blue Cross Blue Shield will begin issuing nearly $2 billion in payouts to claimants in a long-running class action. Payments are expected to start this month, with individuals potentially receiving checks worth hundreds of dollars. The settlement stems from a nearly 14-year legal battle involving subscribers who alleged anti-competitive practices that increased health insurance premiums. In 2012, policyholders sued Blue Cross Blue Shield, claiming affiliated insurers agreed not to offer services in overlapping jurisdictions, limiting competition. The case received class-action status in 2013. In 2020, Blue Cross Blue Shield agreed to settle for $2.67 billion to avoid further legal costs, while denying wrongdoing and noting no verdict was rendered. After objections and additional court proceedings, the settlement was upheld.
#health-insurance #class-action-settlement #antitrustcompetition #consumer-premiums #blue-cross-blue-shield
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