The most requested update I receive is on the column I wrote in October on the Blue Cross Blue Shield regulations.
People want to know when they will receive payment for the claim they filed after reading the column. I have an update for them, although it doesn’t answer all of their questions.
The $2.67 billion interim settlement was reached in October 2020 after more than 35 Blue Cross Blue Shield health insurance plans, including Highmark, were sued for allegedly violating antitrust laws, according to https://www.bcbssettlement.comthe official site of the colony.
The BCBS plans had been accused of illegally entering into a non-competition and restraint of competition agreement between them. As part of the settlement, the plans deny all allegations of wrongdoing.
Anyone who was enrolled in a Blue Cross Blue Shield individual or group insurance plan between February 7, 2008 and October 16, 2020 may be eligible for cash. Individuals enrolled in a self-funded account between September 1, 2015 and October 16, 2020 may also be eligible.
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The deadline for submitting applications was November 5. Four months later, it is still unclear how much or when claimants will receive money.
The reason, at least in part, is that the U.S. District Court overseeing the settlement ordered on Feb. 4 that an additional notice be issued for self-funded entity accounts to clarify their opt-out rights.
These accounts include anyone who has purchased, been covered by, participated in, or signed up for a self-funded account.
While those people can no longer file a claim, they now have until May 2 to opt out of the settlement damages, if they wish to retain their right to sue. If you qualify and wish to opt out, visit the official BC/BS settlement website listed above.
So it looks like it will be months before the court decides whether or not to approve the tentative settlement. Payments will only be made if the court approves it.
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How much could you receive? It depends on how many people have filed claims.
If approved, the settlement fund is estimated to be approximately $1.9 billion after legal fees and administration costs.
Approximately $1.78 billion will be created for individuals, insured groups and their employees and a fund of $120 million will be created for self-funded accounts and their employees.
The exact number of claims was not available on the website, but if, for example, 1.5 million people filed valid claims, the average payout would be $12.66. If 150,000 people filed claims, the average payout would be $126.60.
I guess the amount will be closer to $12.66, but I could be wrong. I will keep you posted.
HERE TO HELP: Have a consumer question you’d like us to help you with? Leave a message for David Bruce at 870-1736, email [email protected] or send mail to 205 W. 12th St., Erie, PA 16534.