Blue Cross Blue Shield Antitrust Litigation
This litigation started back in 2012 as a single case filed against the Blue Cross Blue Shield Association (BCBSA) that claimed that the rules put in place between the 36 members of the BCBSA unlawfully impeded competition among the members of the association. The single case quickly converted into a multi-district litigation (MDL) proceeding in the Northern District of Alabama as more plaintiffs came forward and the scope of the case continued to grow.
The class members claimed that the rules allowed BCBSA members to charge significantly higher rates by not competing with each other. With limiting competition between each member of the association, members were able to create artificially high rates that consumers were forced to pay due to lack of other options. With BCBSA representing nearly a third of Americans with private health insurance, the impact of such allegations is massive.
After 8 years of litigation, 15 million pages of documents, over 120 depositions, and more than a dozen motions to dismiss the plaintiff’s claims, all 36 members of the BCBSA have agreed to a proposed $2.67 billion settlement in hopes of bringing the drawn-out legal battle to a close.
Eligible Class Members who submit valid claims may receive a cash payment from the settlement fund. After deducting attorneys’ fees, administration expenses and other costs from the $2.67 billion Settlement Fund, the net settlement fund is estimated to be approximately $1.9 billion.