Blue Cross Blue Shield insurers have agreed to pay $2.8 billion to resolve antitrust class action claims by hospital systems, physicians and other health providers alleging they were underpaid for reimbursements, the plaintiffs said in an Alabama federal court filing on Monday.
Blue Cross Blue Shield insurers agree to pay $2.8 billion to settle antitrust case
Blues plans deny liability but agree to make changes to increase transparency, including a new platform for member benefits and claims tracking.
By Mike Scarcella
October 16, 2024 at 7:01PM
The settlement is the largest ever for a healthcare antitrust case, they added.
The Blue Cross Blue Shield Association denied the allegations in a statement, but said it agreed to the settlement and will make operational changes to “put years of litigation behind us.”
The providers’ lead attorneys, Joe Whatley and Edith Kallas, said in a statement the proposed settlement would “transform” the BlueCard program through which providers submit claims.
The agreement is subject to approval from U.S. District Judge R. David Proctor.
The Blue Cross Blue Shield system of 33 insurers includes Blue Cross and Blue Shield of Minnesota. Minnesota’s Blues plan and the national association both declined to comment on the settlement.
The Minnesota Star Tribune previously reported insurance agents and analysts differ on whether they think individuals and businesses in Minnesota would recover meaningful sums from such a settlement.
The health providers first sued the Blues plans in 2012, claiming the Blue Cross Blue Shield Association and its affiliates divided the country into exclusive areas where they did not compete with each other. The lawsuit said the nationwide conspiracy increased the cost of insurance and drove down reimbursements.
Under the settlement, Blue Cross will create a system-wide information platform facilitating member benefits, eligibility verification and claims tracking that the attorneys said would lead to more transparency, efficiency and accountability.
The settlement will also give providers more contracting opportunities with Blue Cross plans.
Blue Cross will spend hundreds of millions of dollars implementing the non-monetary part of the settlement, the filing said.
The settlement covers U.S. healthcare service providers, including hospitals and some doctors, with Blues plan patients between July 2008 and October 2024.
The lawyers said they would ask for up to $700 million in legal fees from Blue Cross.
Blue Cross agreed in 2020 to pay $2.7 billion to resolve related antitrust claims from commercial and individual subscribers. The U.S. Supreme Court upheld that deal in June.
Staff writer Victor Stefanescu contributed to this story.
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Mike Scarcella
Reuters
The Blue Cross Blue Shield Association denied the allegations in a statement, but said it agreed to the settlement and will make operational changes to “put years of litigation behind us." The settlement is the largest ever for a healthcare antitrust case.
