If you are an associational entity, such as a union, professional employer organization, trade association, other entity (“Union”) or Business that purchased a Blue-Branded Commercial Health Benefit Product (unless the only Blue-Branded Product purchased was a vision or
dental product) between February 7th, 2008, and October 16th, 2020 (“Class Period 1”) your Union or Company may be eligible to claim its share of an approved $2.67 billion settlement (“Settlement”). If your Union or Company self-funded its health benefits but purchased certain Blue-Branded administrative or related services, Blue-Branded stop-loss coverage, or a Blue-Branded Self-Funded Benefit Plan (collectively “Blue Branded Administrative Services”), between September 1, 2015 and October 16, 2020 (“Class Period 2”), your Union or company may also be eligible to claim your share of the Settlement.
Plaintiffs allege that Settling Defendants violated antitrust laws by entering into an agreement where the Settling Defendants agreed not to compete with each other in selling health insurance and related products in the United States and Puerto Rico, as well as agreeing to other means of limiting competition in the market for health insurance and administration of Commercial Health Benefit Products. Settling Defendants deny all allegations of wrongdoing and assert 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 agreed to a Settlement to avoid the risk and cost of further litigation. This Settlement is subject to approval by the court and may be subject to modification prior to approval, and any appeals may also modify the terms of the Settlement.
Approximately $1.78 billion is allocated to a large group of individuals and groups, including Unions & Companies that purchased a Blue Branded Commercial Health Benefit Product from a Settling Defendant during Class Period 1. Approximately $120 million was allocated to a large number of groups, including Unions & Companies, which self-funded health benefits, and which purchased Blue-Branded Administrative Services during Class Period 2.
The proposed settlement provides that the Union’s or companies benefit will be
calculated based on the following formula:
- Total Premiums Paid During the Settlement Class Period by the Union or Company) Divided by
- (Total Premiums Paid during the Settlement Class Period by all Claimants in the group who submit claims) Multiplied by
- (Total dollars in the applicable Settlement Fund, as appropriate)
- = Claim payment to Union or Company.
A motion to approve the Settlement was filed on October 30, 2020. A preliminary approval hearing for the Settlement, for the plan, for notice and appointment of a claims administration and for other relief was held November 16, 2020. The settlement was preliminarily approved by the judge on November 30th 2020.
Claim Filing Deadline: November 5th, 2021.
Distribution: The majority of the settlement funds will be distributed within 30 days of the Court’s entry of Final Judgment – tentatively scheduled
for October 20-21, 2021.