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HUNTSVILLE, Ala. (WHNT) — In a significant development for many Americans, those who once held health insurance with the Blue Cross Blue Shield Association could soon receive financial compensation from a $2.67 billion settlement addressing antitrust allegations.
The legal battle, initiated in 2013, accused Blue Cross Blue Shield companies of stifling competition and inflating insurance prices by segmenting markets and avoiding rivalry. Although the insurers denied any misconduct, they chose to settle to circumvent extended legal proceedings.
An Alabama federal judge gave the green light to this substantial settlement in October 2020.
Eligible individuals who submitted valid claims by the November 2021 deadline can expect payment distributions to commence in May 2026.
After accounting for legal fees and expenses, approximately $1.9 billion from the settlement fund will be allocated to subscribers. The exact payment each claimant receives will depend on the premiums they paid and their coverage type.
About 6 million claims were submitted nationwide, and most individuals’ payouts are expected to be modest.
The settlement includes many people who were covered by a Blue Cross Blue Shield plan between February 2008 and October 2020. (See more details on if you qualified here.)
Individuals had until Nov. 5, 2021, to submit claims, while providers had until July 29, 2025. The settlement administrator began issuing claim notices to eligible class members on Feb. 16, 2026.
In addition to the monetary settlement, BCBS agreed to operational changes to increase market competition. The lawsuit resulted in one of the largest antitrust settlements in the U.S. health care industry.