April 19, 2021
You and your employees may be receiving information on a class-action lawsuit filed against the Blue Cross Blue Shield Association (BCBS) health plans. These communications will come from BCBS or a third-party law firm seeking to represent you or your employees. Below is information on the details of the settlement from the official BCBS settlement website:
This settlement, arising from a class action antitrust lawsuit called In re: Blue Cross Blue Shield Antitrust Litigation MDL 2406, N.D. Ala. Master File No. 2:13-cv-20000-RDP (the “Settlement”), was reached on behalf of individuals and companies that purchased or received health insurance provided or administered by a Blue Cross Blue Shield company. Class Representatives (“Plaintiffs”) reached a Settlement on October 16, 2020 with the Blue Cross Blue Shield Association (“BCBSA”) and Settling Individual Blue Plans. BCBSA and Settling Individual Blue Plans are called “Settling Defendants.”
Plaintiffs allege that Settling Defendants violated antitrust laws by entering into an agreement not to compete with each other and to limit competition among themselves in selling health insurance and administrative services for health insurance. Settling Defendants deny all allegations of wrongdoing and assert that their conduct results in lower healthcare costs and greater access to care for their customers. The Court has not decided who is right or wrong. Instead, Plaintiffs and Settling Defendants have agreed to a Settlement to avoid the risk and cost of further litigation.
If approved by the Court, the Settlement will establish a $2.67 billion Settlement Fund. 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.
Attached is the notice with additional details on the Class Action Settlement for those that had a policy with Blue Cross or Blue Shield during the relevant timeframes.
The proposed settlement amount is $2.678 billion, which has been broken down to be allocated to the below buckets:
Settlement payment amounts will 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.
We have summarized key points to note here:
Plaintiffs' Co-Lead Counsel
Blue Cross Blue Shield Settlement
c/o Michael D. Hausfeld
888 16th Street NW, Suite 300
Washington, DC 20006
Blue Cross Blue Shield Settlement
c/o David Boies
Boies Schiller Flexner LLP
333 Main Street
Armonk, NY 10504
We encourage your clients’ legal counsel to review this and assist with further questions regarding whether to file as well as with questions surrounding the filing.
Please also feel free to reach out to your Burnham Benefits Consultant or Burnham at 949‐833‐2983 or email@example.com.
Burnham Benefits does not engage in the practice of law and this publication should not be construed as the providing of legal advice or a legal opinion of any kind. The consulting advice we provide is intended solely to assist in assessing its compliance with the Patient Protection and Affordable Care Act and other applicable federal and state law requirements, and is based on Burnham Benefit’s interpretation of federal guidance in effect as of the date of this publication. To the best of our knowledge, the information provided herein, and assumptions relied on, are reasonable and accurate as of the date of this publication. Furthermore, to ensure compliance with IRS Circular 230, any tax advice contained in this publication is not intended to be used, and cannot be used, for purposes of (i) avoiding penalties imposed under the United States Internal Revenue Code or (ii) promoting, marketing or recommending to another person any tax-related matter.