Nov. 8, 2024

Blue Cross Blue Shield Settles Long-Running Multibillion-Dollar Antitrust Suit

Blue Cross Blue Sheild has provisionally settled a decade-plus, multibillion-dollar antitrust lawsuit filed on behalf of physicians, hospitals, and other practitioners in one of the largest such settlements in the history of the country's health care industry. The settlement includes a fund of $2.8 billion in cash earmarked for the plaintiffs as well as millions of dollars dedicated to system improvements to the insurer giant's BlueCard Program.

In 2012, the plaintiffs filed a class-action lawsuit against Blue Cross Blue Shield and its affiliates alleging the insurer colluded to divide geographic regions to avoid competition with each other and reduce reimbursements. Nationally, Blue Cross Blue Shield includes 33 independent, locally operated Blue Cross companies.

In addition to the large damages fund, monies dedicated to system improvements will help address longstanding administrative issues with the BlueCard Program, among many other changes favorable to physician groups, hospitals, and other contracted entities.

Specifics on eligibility for funds will be available once the preliminary settlement is approved by the court. Blue Cross Blue Shield affiliates in Washington state include Premera Blue Cross and Regence Blue Shield. For more information on the case, read the co-lead counsel's update. The settlement agreement can be read here.