Thoughts About Blue Cross Blue Shield Settlement - Class Action Antitrust Lawsuit

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SQ7N3mvB
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Thoughts About Blue Cross Blue Shield Settlement - Class Action Antitrust Lawsuit

Post by SQ7N3mvB »

I'm looking for insights concerning the Blue Cross Blue Shield Settlement class action lawsuit. Normally class action lawsuits such as this are not worth my time or the trouble as I'm not a big enough fish in the pond.

But this one is based on fairly significant health insurance premiums paid between 2008-2020. Using the formula found in the Long Form Notice on page 8, it's possible my claim would be worth the trouble. For $1,000 paid in premiums, they calculate a theoretical possibility of $178 in payment. I'm highly Boglehead skeptical of course.

I'd appreciate hearing from those with legal/financial experience as to whether this potential payout is ridiculous and/or if those of you with Blue branded policies intend to follow-up as potential claimants on this class action lawsuit.

Thanks! (Newbie poster apologies if this has been discussed elsewhere although I could not find it ... and/or I posted in the wrong area.)
talzara
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Re: Thoughts About Blue Cross Blue Shield Settlement - Class Action Antitrust Lawsuit

Post by talzara »

SQ7N3mvB wrote: Fri Apr 16, 2021 4:24 pm But this one is based on fairly significant health insurance premiums paid between 2008-2020. Using the formula found in the Long Form Notice on page 8, it's possible my claim would be worth the trouble. For $1,000 paid in premiums, they calculate a theoretical possibility of $178 in payment. I'm highly Boglehead skeptical of course.
The $178 is an example based on $1.78 billion in settlement funds and $10 billion of premiums. It is not the amount you will actually receive.

The actual premiums could be much higher. Even a small Blue Cross licensee like Blue Cross of Idaho collected $1.8 billion in premiums in 2020. The largest Blue Cross licensee, Anthem, collected $74 billion in 2020. That's just in one year, and the settlement covers 13 years of premiums.

Although not everybody will file a claim, individuals and fully-insured companies are in the same settlement pool. Unless the companies plan to opt out, the settlement funds will be greatly diluted.

If there are $100 billion of premiums in the settlement pool, you will get $17.80 per $1,000 of premiums.

If there are $1 trillion of premiums in the settlement pool, you will get $1.78 per $1,000 of premiums.

If there are $10 trillion of premiums in the settlement pool, you will get 17.8 cents per $1,000 of premiums. However, all Blue Cross licensees put together didn't collect $10 trillion of premiums in 2008-2020. This is less than the minimum amount that you will receive.
Last edited by talzara on Fri Apr 16, 2021 7:03 pm, edited 1 time in total.
Zillions
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Re: Thoughts About Blue Cross Blue Shield Settlement - Class Action Antitrust Lawsuit

Post by Zillions »

I hate sounding cynical, but is this settlement even legit?

My son has been enrolled in a Child Only Blue Shield plan since Jan 1, 2019, and therefore a class member, and is still enrolled to this day. So, he would be a "class member", but we have received ZERO notice of this class action lawsuit till date. How do I determine how legit this is, before I share all his information with that Settlement site:
https://www.bcbssettlement.com/secondbluebid
talzara
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Re: Thoughts About Blue Cross Blue Shield Settlement - Class Action Antitrust Lawsuit

Post by talzara »

Zillions wrote: Fri Apr 16, 2021 6:15 pm I hate sounding cynical, but is this settlement even legit?

My son has been enrolled in a Child Only Blue Shield plan since Jan 1, 2019, and therefore a class member, and is still enrolled to this day. So, he would be a "class member", but we have received ZERO notice of this class action lawsuit till date.
The USPS is experiencing weeks-long delays in mail delivery. Also, some Blue Cross licensees will supply addresses to the settlement administrator later than other Blue Cross licensees. It could take several months to get a notice.

Your son might not get a notice at all. It is not clear if your son is actually a class member.
Dependents, beneficiaries (including minors), and non-employees are NOT included in the Damages Class.

https://www.bcbssettlement.com/admin/se ... nline=true
There are two ways to understand that sentence:
  1. Minors who are beneficiaries are excluded from the class.
  2. "Beneficiaries" includes all minors, so all minors are excluded from the class.
Zillions wrote: Fri Apr 16, 2021 6:15 pm How do I determine how legit this is, before I share all his information with that Settlement site:
https://www.bcbssettlement.com/secondbluebid
JND is a class action settlement administrator. The JND website lists the Blue Cross case, and the link goes to bcbssettlement.com: https://www.jndla.com/cases/class-action-administration
Trader Joe
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Re: Thoughts About Blue Cross Blue Shield Settlement - Class Action Antitrust Lawsuit

Post by Trader Joe »

SQ7N3mvB wrote: Fri Apr 16, 2021 4:24 pm I'm looking for insights concerning the Blue Cross Blue Shield Settlement class action lawsuit. Normally class action lawsuits such as this are not worth my time or the trouble as I'm not a big enough fish in the pond.

But this one is based on fairly significant health insurance premiums paid between 2008-2020. Using the formula found in the Long Form Notice on page 8, it's possible my claim would be worth the trouble. For $1,000 paid in premiums, they calculate a theoretical possibility of $178 in payment. I'm highly Boglehead skeptical of course.

I'd appreciate hearing from those with legal/financial experience as to whether this potential payout is ridiculous and/or if those of you with Blue branded policies intend to follow-up as potential claimants on this class action lawsuit.

Thanks! (Newbie poster apologies if this has been discussed elsewhere although I could not find it ... and/or I posted in the wrong area.)
Thank you very much for posting this information. I was unaware of this class action.

I just included myself in the class action settlement.
Zillions
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Re: Thoughts About Blue Cross Blue Shield Settlement - Class Action Antitrust Lawsuit

Post by Zillions »

talzara wrote: Fri Apr 16, 2021 6:59 pm
Dependents, beneficiaries (including minors), and non-employees are NOT included in the Damages Class.

https://www.bcbssettlement.com/admin/se ... nline=true

There are two ways to understand that sentence:
  1. Minors who are beneficiaries are excluded from the class.
  2. "Beneficiaries" includes all minors, so all minors are excluded from the class.
How are they defining "beneficiaries"? In this case, my son (a minor) is an individual subscriber to a private (non-employer sponsored) "Child Only" plan.
MikeG62
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Re: Thoughts About Blue Cross Blue Shield Settlement - Class Action Antitrust Lawsuit

Post by MikeG62 »

Trader Joe wrote: Fri Apr 16, 2021 7:21 pm
SQ7N3mvB wrote: Fri Apr 16, 2021 4:24 pm I'm looking for insights concerning the Blue Cross Blue Shield Settlement class action lawsuit. Normally class action lawsuits such as this are not worth my time or the trouble as I'm not a big enough fish in the pond.

But this one is based on fairly significant health insurance premiums paid between 2008-2020. Using the formula found in the Long Form Notice on page 8, it's possible my claim would be worth the trouble. For $1,000 paid in premiums, they calculate a theoretical possibility of $178 in payment. I'm highly Boglehead skeptical of course.

I'd appreciate hearing from those with legal/financial experience as to whether this potential payout is ridiculous and/or if those of you with Blue branded policies intend to follow-up as potential claimants on this class action lawsuit.

Thanks! (Newbie poster apologies if this has been discussed elsewhere although I could not find it ... and/or I posted in the wrong area.)
Thank you very much for posting this information. I was unaware of this class action.

I just included myself in the class action settlement.
+1
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carolinaman
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Re: Thoughts About Blue Cross Blue Shield Settlement - Class Action Antitrust Lawsuit

Post by carolinaman »

DW has had a Medigap plan with BCBS since 2009. Per document, Medicare is excluded from lawsuit.

Thanks for sharing though.
runninginvestor
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Re: Thoughts About Blue Cross Blue Shield Settlement - Class Action Antitrust Lawsuit

Post by runninginvestor »

This is the second class action settlement I've been offered by BCBS in as many years. I don't think these settlements are affecting their practices that much.
Chadnudj
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Re: Thoughts About Blue Cross Blue Shield Settlement - Class Action Antitrust Lawsuit

Post by Chadnudj »

SQ7N3mvB wrote: Fri Apr 16, 2021 4:24 pm I'm looking for insights concerning the Blue Cross Blue Shield Settlement class action lawsuit. Normally class action lawsuits such as this are not worth my time or the trouble as I'm not a big enough fish in the pond.

But this one is based on fairly significant health insurance premiums paid between 2008-2020. Using the formula found in the Long Form Notice on page 8, it's possible my claim would be worth the trouble. For $1,000 paid in premiums, they calculate a theoretical possibility of $178 in payment. I'm highly Boglehead skeptical of course.

I'd appreciate hearing from those with legal/financial experience as to whether this potential payout is ridiculous and/or if those of you with Blue branded policies intend to follow-up as potential claimants on this class action lawsuit.

Thanks! (Newbie poster apologies if this has been discussed elsewhere although I could not find it ... and/or I posted in the wrong area.)
Attorney here with experience in class actions, just offering my 2 cents in a general/theoretical sense -- not offering you legal advice or creating an attorney-client relationship.

Class action settlements are an important way to ensure that corporate wrongdoers pay for their wrongdoing and injured parties are made whole (or at minimum made a little bit better than they are as a result of the wrongdoing.) When a settlement has been reached, the corporation is (in the vast majority of cases, although there are relatively rare exceptions) going to pay that money out to someone/for something.

The lawyer's fees (which have to be approved by the Court as being appropriate) are set -- any extra unclaimed funds do not and cannot go to the plaintiff's lawyers. (As an aside, plaintiffs' lawyers fees are almost always appropriate, as class action cases like this are taken contingent, meaning the plaintiffs' lawyers make nothing unless a court-approved settlement or verdict/damages for the class is reached. The plaintiffs' lawyers thus take on huge out of pocket expenses that they have no guarantee of recuperating if they should lose the case. This is also why you should be appropriately skeptical of reports/commentary that a class action lawsuit is meritless -- if it was meritless, would the attorneys really be risking their own money out of pocket to try and bring it?)

So, if you are a class member and do not claim your share of a class action award, what happens? Well, it might go some charitable cause, it might go toward coupons or some type of promotional thing to benefit other people who were NOT harmed by this wrongdoing. Sometimes, it might even revert back to the corporation that did the wrongdoing! You were harmed if you're a member of the class, you should get that share of the award.

I'd highly recommend you ALWAYS file a claim in a class action, or (after reading the class action notice carefully and ensuring you agree that the settlement is appropriate) being a member of the class. (You can also object if you disagree with the appropriateness of the settlement). I would not "opt-out" and NOT object, because you're basically saying "I don't want the award to which I'm entitled, AND I have no plans to try and object to the settlement/get the settlement amount higher, or bring my claim on an individual basis to get what I should be entitled to."

Most class action claims are extremely easy to file -- less than 15 minutes to fill out a form online, and get your check for whatever amount you are lawfully entitled to. It's worth it to do, even for $5 or less, because THAT is how we make corporate wrongdoers pay for wrongdoing, and because it's money YOU are entitled to (that will just go to someone else who is not entitled to it otherwise).
talzara
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Re: Thoughts About Blue Cross Blue Shield Settlement - Class Action Antitrust Lawsuit

Post by talzara »

Zillions wrote: Fri Apr 16, 2021 7:32 pm How are they defining "beneficiaries"? In this case, my son (a minor) is an individual subscriber to a private (non-employer sponsored) "Child Only" plan.
The notice does not define beneficiaries. The settlement agreement doesn't define beneficiaries, either.

You'll find out when your son gets a notice or doesn't get a notice.
talzara
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Re: Thoughts About Blue Cross Blue Shield Settlement - Class Action Antitrust Lawsuit

Post by talzara »

carolinaman wrote: Sat Apr 17, 2021 8:11 am DW has had a Medigap plan with BCBS since 2009. Per document, Medicare is excluded from lawsuit.
This is an antitrust lawsuit.

There can be no market power with a Medigap plan because the insurer does not have to build a provider network. Even life insurance companies can write Medigap policies. In fact, ManhattanLife and Mutual of Omaha are among the top 10 Medigap insurers.
talzara
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Re: Thoughts About Blue Cross Blue Shield Settlement - Class Action Antitrust Lawsuit

Post by talzara »

Chadnudj wrote: Sat Apr 17, 2021 8:49 am Class action settlements are an important way to ensure that corporate wrongdoers pay for their wrongdoing and injured parties are made whole (or at minimum made a little bit better than they are as a result of the wrongdoing.) When a settlement has been reached, the corporation is (in the vast majority of cases, although there are relatively rare exceptions) going to pay that money out to someone/for something.
Alleged wrongdoing, not actual wrongdoing.

Blue Cross is like AAA. It's an association of independently-operated companies sharing a national brand. This settlement allows Blue Cross to continue exclusive licensing of territories, which is what Blue Cross wanted to keep doing.

The settlement allows Blue Cross companies to sell under a non-Blue Cross brand outside their own territory. That was already possible by setting up a holding company to own both Blue Cross and non-Blue Cross insurers, as Independence Blue Cross was already doing.

It also allows self-insured companies to get a Second Blue Bid. Maybe this is going to save money, but it can't be much. The second Blue Cross company will have to use the first Blue Cross company to pay doctors in its network.

This appears to be just about the money. If you have a policy from a for-profit Blue Cross company, then you get some money from the shareholders. If you have a policy from a nonprofit Blue Cross company, the settlement actually takes money out of your pocket and gives it to the lawyers.
Chadnudj
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Re: Thoughts About Blue Cross Blue Shield Settlement - Class Action Antitrust Lawsuit

Post by Chadnudj »

talzara wrote: Sat Apr 17, 2021 1:16 pm
Alleged wrongdoing, not actual wrongdoing.

Blue Cross is like AAA. It's an association of independently-operated companies sharing a national brand. This settlement allows Blue Cross to continue exclusive licensing of territories, which is what Blue Cross wanted to keep doing.

The settlement allows Blue Cross companies to sell under a non-Blue Cross brand outside their own territory. That was already possible by setting up a holding company to own both Blue Cross and non-Blue Cross insurers, as Independence Blue Cross was already doing.

It also allows self-insured companies to get a Second Blue Bid. Maybe this is going to save money, but it can't be much. The second Blue Cross company will have to use the first Blue Cross company to pay doctors in its network.

This appears to be just about the money. If you have a policy from a for-profit Blue Cross company, then you get some money from the shareholders. If you have a policy from a nonprofit Blue Cross company, the settlement actually takes money out of your pocket and gives it to the lawyers.
It is alleged wrongdoing where the complaint survived a motion to dismiss (difficult to do in antitrust in the age of Twombly), a class was certified (again, very difficult to do), and discovery had revealed enough information supportive of the claims of the plaintiff that Defendants were not going to defeat the case on summary judgment (or failed to defeat the claims at summary judgment) and there was considerable risk to them at trial that they'd have to pay out even more money (antitrust cases can obtain treble damages -- defendants here almost certainly settled for less). Thus, they settled.....because the wrongdoing was proven enough to get the case to the point where settlement made sense.

And the issue now is what happens to the settlement dollars that they agreed to. The money will be paid out in one way or another. If you qualify as a class member, your options are to take the settlement money, or opt out (to either bring your own lawsuit or just decline the money). But if you opt out and decline the money, that just means you're not getting the money -- it instead will be used for charitable purposes decided by the Court, or some discount across all customers or some other fashion. Under no circumstances will your declined money go to the attorneys (and, indeed, your decision to accept or reject the class award has no bearing on the attorneys fees, which have already been approved as appropriate by the Court as part of the settlement).
AnEngineer
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Re: Thoughts About Blue Cross Blue Shield Settlement - Class Action Antitrust Lawsuit

Post by AnEngineer »

Chadnudj wrote: Mon Apr 19, 2021 10:33 am...If you qualify as a class member, your options are to take the settlement money, or opt out (to either bring your own lawsuit or just decline the money). ...
You can also do nothing: which means you are bound by the settlement (can't sue) but get nothing.
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Re: Thoughts About Blue Cross Blue Shield Settlement - Class Action Antitrust Lawsuit

Post by Jack FFR1846 »

I'll opt in and expect the same settlement checks I received from the eBay class action some years ago. First I got a check for 2 cents. Then the windfall and got a second check for 4 cents. Yes, I cashed them both.
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otinkyad
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Re: Thoughts About Blue Cross Blue Shield Settlement - Class Action Antitrust Lawsuit

Post by otinkyad »

In theory, I support class action lawsuits as our society’s way of crowd policing the behavior of companies. In practice, the dozens I’ve been involved in have all seemed like whiners. In theory, I’d like to opt out of every one, and I wish that was the default (though that’s probably counter to the legal treatment of classes). In practice, I’m too lazy to opt out, and certainly too lazy to collect my two cents.
talzara
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Re: Thoughts About Blue Cross Blue Shield Settlement - Class Action Antitrust Lawsuit

Post by talzara »

Chadnudj wrote: Mon Apr 19, 2021 10:33 am It is alleged wrongdoing where the complaint survived a motion to dismiss (difficult to do in antitrust in the age of Twombly), a class was certified (again, very difficult to do), and discovery had revealed enough information supportive of the claims of the plaintiff that Defendants were not going to defeat the case on summary judgment (or failed to defeat the claims at summary judgment) and there was considerable risk to them at trial that they'd have to pay out even more money (antitrust cases can obtain treble damages -- defendants here almost certainly settled for less). Thus, they settled.....because the wrongdoing was proven enough to get the case to the point where settlement made sense.
Our legal system encourages a lot of class actions to be settled because the defendants can't be sure they'll win at trial. That doesn't mean the cases have merit.

The 403(b) class action lawsuits were also settled. The only case that made it to trial was decided for the defendant on all counts, but the other universities weren't willing to roll the dice. That wasn't an antitrust case, so the universities weren't facing treble damages, but they still wouldn't take the risk. Anything can happen at trial, regardless of the merits.
Chadnudj wrote: Mon Apr 19, 2021 10:33 am And the issue now is what happens to the settlement dollars that they agreed to. The money will be paid out in one way or another. If you qualify as a class member, your options are to take the settlement money, or opt out (to either bring your own lawsuit or just decline the money).
Nobody said that the OP should opt out.

In our class action system, you should take the settlement even if -- especially if -- you disagree with the plaintiffs. This reduces the amount of money available to the other class members, so it takes money out of their pocket. Unfortunately, it usually doesn't affect the lead plaintiffs, who get a special settlement that's much larger.
talzara
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Re: Thoughts About Blue Cross Blue Shield Settlement - Class Action Antitrust Lawsuit

Post by talzara »

otinkyad wrote: Mon Apr 19, 2021 4:29 pm In theory, I support class action lawsuits as our society’s way of crowd policing the behavior of companies. In practice, the dozens I’ve been involved in have all seemed like whiners. In theory, I’d like to opt out of every one, and I wish that was the default (though that’s probably counter to the legal treatment of classes). In practice, I’m too lazy to opt out, and certainly too lazy to collect my two cents.
In almost all class action settlements, there's a fixed sum of money that's distributed to all of the claimants. If you opt out or don't file a claim, it just rewards the people who do file claims.
tj
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Re: Thoughts About Blue Cross Blue Shield Settlement - Class Action Antitrust Lawsuit

Post by tj »

talzara wrote: Sat Apr 17, 2021 12:46 pm
carolinaman wrote: Sat Apr 17, 2021 8:11 am DW has had a Medigap plan with BCBS since 2009. Per document, Medicare is excluded from lawsuit.
This is an antitrust lawsuit.

There can be no market power with a Medigap plan because the insurer does not have to build a provider network. Even life insurance companies can write Medigap policies. In fact, ManhattanLife and Mutual of Omaha are among the top 10 Medigap insurers.
Not to mention State Farm and USAA. Way more Medigap insurers than employer-based or ACA plans.
brian91480
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Re: Thoughts About Blue Cross Blue Shield Settlement - Class Action Antitrust Lawsuit

Post by brian91480 »

I got notified of a class action lawsuit with an internet provider 1 or 2 years ago. I spent 5 minutes filling out the online form... then forgot about it.

Out of the blue I got a $75 check mailed to me a few weeks ago. Take the 5 minutes to fill this out... you'll get free money... eventually... long after you forgot about this.
GeMoney
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Re: Thoughts About Blue Cross Blue Shield Settlement - Class Action Antitrust Lawsuit

Post by GeMoney »

Are the settlement proceeds theoretically taxable income? I realize that the individual amounts are typically too small to report on a 1099 form by the payer.
mw1739
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Re: Thoughts About Blue Cross Blue Shield Settlement - Class Action Antitrust Lawsuit

Post by mw1739 »

My wife received a notice in the mail addressed to her maiden name. She hasn’t had other insurance since college when she was covered under her parents plan. I guess it’s possible she was covered in the earliest years of this suit, but I have no clue who I put for employer on the claim site - her fathers employer?
MishkaWorries
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Re: Thoughts About Blue Cross Blue Shield Settlement - Class Action Antitrust Lawsuit

Post by MishkaWorries »

Chadnudj wrote: Sat Apr 17, 2021 8:49 am
The lawyer's fees (which have to be approved by the Court as being appropriate) are set -- any extra unclaimed funds do not and cannot go to the plaintiff's lawyers. (As an aside, plaintiffs' lawyers fees are almost always appropriate, as class action cases like this are taken contingent,
Nice racket.

I've noticed most class action lawsuits are just to make the lawyers, on both sides rich and the consumer gets some coupon, a few dollars or a discount rate.

Class actions should be limited to real malfeasance and attorney fees should be limited to actual expenses and a reasonable hourly rate.
We plan. G-d laughs.
FireHorse
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Re: Thoughts About Blue Cross Blue Shield Settlement - Class Action Antitrust Lawsuit

Post by FireHorse »

I also received a mail about this class action lawsuit since I have been using BCBS as my insurance carrier for many years.
I was going through the process of "file claim", it asking me to choose "Accept the default option" or "Apply for an alternative contribution%". I have no knowledge of legal things, should I just choose "Accept the default option"? it says the claims will not be paid if its under or equal to $5.
I have read other posts that they get paid even its 2 cents or 4 cents.
Can anyone provide suggestions?
Thanks.
talzara
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Re: Thoughts About Blue Cross Blue Shield Settlement - Class Action Antitrust Lawsuit

Post by talzara »

GeMoney wrote: Thu Apr 22, 2021 6:22 pm Are the settlement proceeds theoretically taxable income? I realize that the individual amounts are typically too small to report on a 1099 form by the payer.
Yes, the payments are taxable as income.

The IRS considers legal settlements to be income unless the settlement agreement characterizes the payments otherwise:
In some cases, a tax provision in the settlement agreement characterizing the payment can result in their exclusion from taxable income. The IRS is reluctant to override the intent of the parties. If the settlement agreement is silent as to whether the damages are taxable, the IRS will look to the intent of the payor to characterize the payments and determine the Form 1099 reporting requirements.

https://www.irs.gov/government-entities ... -judgments
Blue Cross did not admit fault in the case. The settlement agreement does not characterize the payments as a return of premiums. In fact, the agreement says that class members are responsible for paying federal, state, and local taxes.
talzara
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Re: Thoughts About Blue Cross Blue Shield Settlement - Class Action Antitrust Lawsuit

Post by talzara »

mw1739 wrote: Thu Apr 22, 2021 6:30 pm My wife received a notice in the mail addressed to her maiden name. She hasn’t had other insurance since college when she was covered under her parents plan. I guess it’s possible she was covered in the earliest years of this suit, but I have no clue who I put for employer on the claim site - her fathers employer?
Since she was insured as a dependent or beneficiary, your wife is not entitled to file a claim for monetary damages:
Dependents, beneficiaries (including minors), and non-employees are NOT eligible to receive payment.

https://www.bcbssettlement.com/faq
Dependents are included in the Injunctive Relief class, which is entitled only to changes in business practices. Your wife will feel relieved that Blue Cross licensees can now sell outside their territory using a different brand, and self-funded plans can obtain a Second Blue Bid.

As I pointed out above, Blue Cross licensees could already sell insurance outside their territory through a holding company, and the second bid may come out higher than the first bid. However, that's all your wife is getting from the Blue Cross settlement.
talzara
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Re: Thoughts About Blue Cross Blue Shield Settlement - Class Action Antitrust Lawsuit

Post by talzara »

FireHorse wrote: Fri Apr 23, 2021 10:48 am I also received a mail about this class action lawsuit since I have been using BCBS as my insurance carrier for many years.
I was going through the process of "file claim", it asking me to choose "Accept the default option" or "Apply for an alternative contribution%". I have no knowledge of legal things, should I just choose "Accept the default option"? it says the claims will not be paid if its under or equal to $5.
For fully-insured group health insurance policies, the settlement assumes that employees paid 15% of the individual premium or 34% of the family premium.

If you paid more than 15% or 34% of the premium, you are entitled to a larger share of the settlement. You must fill in the table and provide proof of your premium contribution. For years after the Affordable Care Act, this information will be on your W-2. However, the settlement period goes back to 2008, before the ACA. You can get your pre-ACA premium contribution from your paystub, but your employer would have to provide proof of the total premium.

Most people will be accepting the default 15% or 34%.
HIinvestor
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Re: Thoughts About Blue Cross Blue Shield Settlement - Class Action Antitrust Lawsuit

Post by HIinvestor »

Thanks for this post. I just filed a claim as we have been BCBS members since 1986. The most challenging thing was digging out the address to list as employer and pulling out my insurance card to enter my member number. I am fine with making a claim.
anonenigma
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Re: Thoughts About Blue Cross Blue Shield Settlement - Class Action Antitrust Lawsuit

Post by anonenigma »

talzara wrote: Fri Apr 23, 2021 5:59 pm
FireHorse wrote: Fri Apr 23, 2021 10:48 am I also received a mail about this class action lawsuit since I have been using BCBS as my insurance carrier for many years.
I was going through the process of "file claim", it asking me to choose "Accept the default option" or "Apply for an alternative contribution%". I have no knowledge of legal things, should I just choose "Accept the default option"? it says the claims will not be paid if its under or equal to $5.
For fully-insured group health insurance policies, the settlement assumes that employees paid 15% of the individual premium or 34% of the family premium.

If you paid more than 15% or 34% of the premium, you are entitled to a larger share of the settlement. You must fill in the table and provide proof of your premium contribution. For years after the Affordable Care Act, this information will be on your W-2. However, the settlement period goes back to 2008, before the ACA. You can get your pre-ACA premium contribution from your paystub, but your employer would have to provide proof of the total premium.

Most people will be accepting the default 15% or 34%.
I received an email notifying me of the settlement and was surprised because my employer paid all of the plan premiums. Does that mean I would eventually be deemed ineligible, or would I be in line to receive something for nothing?
talzara
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Re: Thoughts About Blue Cross Blue Shield Settlement - Class Action Antitrust Lawsuit

Post by talzara »

anonenigma wrote: Sat Apr 24, 2021 4:49 am I received an email notifying me of the settlement and was surprised because my employer paid all of the plan premiums. Does that mean I would eventually be deemed ineligible, or would I be in line to receive something for nothing?
Employees get whatever is left over after the employer files a claim.

If your employer files a claim and tells them that it paid 100%, then employees will get nothing.

If your employer files a claim and takes the default 85% allocation, then employees will get the default 15% allocation.

The Long Form Notice has a chart on page 8 that shows what happens with each combination of claims.
FireHorse
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Re: Thoughts About Blue Cross Blue Shield Settlement - Class Action Antitrust Lawsuit

Post by FireHorse »

talzara wrote: Fri Apr 23, 2021 5:59 pm
FireHorse wrote: Fri Apr 23, 2021 10:48 am I also received a mail about this class action lawsuit since I have been using BCBS as my insurance carrier for many years.
I was going through the process of "file claim", it asking me to choose "Accept the default option" or "Apply for an alternative contribution%". I have no knowledge of legal things, should I just choose "Accept the default option"? it says the claims will not be paid if its under or equal to $5.
For fully-insured group health insurance policies, the settlement assumes that employees paid 15% of the individual premium or 34% of the family premium.

If you paid more than 15% or 34% of the premium, you are entitled to a larger share of the settlement. You must fill in the table and provide proof of your premium contribution. For years after the Affordable Care Act, this information will be on your W-2. However, the settlement period goes back to 2008, before the ACA. You can get your pre-ACA premium contribution from your paystub, but your employer would have to provide proof of the total premium.

Most people will be accepting the default 15% or 34%.
Thanks for this. I decided to accept the default option since I don't have the exact premium paid prior to retire. I have cleaned up alot of employment records after I retired.
BillWalters
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Re: Thoughts About Blue Cross Blue Shield Settlement - Class Action Antitrust Lawsuit

Post by BillWalters »

$700 million to the lawyers.

Zero dollars paid by anyone personally.

What a joke.
Chadnudj
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Re: Thoughts About Blue Cross Blue Shield Settlement - Class Action Antitrust Lawsuit

Post by Chadnudj »

MishkaWorries wrote: Thu Apr 22, 2021 7:17 pm
Chadnudj wrote: Sat Apr 17, 2021 8:49 am
The lawyer's fees (which have to be approved by the Court as being appropriate) are set -- any extra unclaimed funds do not and cannot go to the plaintiff's lawyers. (As an aside, plaintiffs' lawyers fees are almost always appropriate, as class action cases like this are taken contingent,
Nice racket.

I've noticed most class action lawsuits are just to make the lawyers, on both sides rich and the consumer gets some coupon, a few dollars or a discount rate.

Class actions should be limited to real malfeasance and attorney fees should be limited to actual expenses and a reasonable hourly rate.
This is real malfeasance. A corporation stealing $5 each from 10 million customers is still stealing $50 million dollars, and the company should be held accountable for that.

And the attorney fees that are approved by the judge are limited to actual expenses and a reasonable rate -- every penny that goes to the plaintiffs' counsel in a case like this has to be scrutinized and approved by the judge as part of approving the settlement/judgment, and objectors to the class award can object that the plaintiffs' counsel's fee is excessive (and frequently do so, which delays the settlement until their objection is dealt with). Judges aren't approving settlements that pay plaintiffs' counsel excessive fees -- they demand billing records from the plaintiffs' counsel to demonstrate the time involved in the case, consider the complexity of the case itself and the risk the plaintiffs' counsel took to bring it with no certainty of recovery, and any other relevant factors.

It's simply a fallacy that plaintiffs' counsel are recovering excess fees for these cases. It just does not happen.
BillWalters
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Re: Thoughts About Blue Cross Blue Shield Settlement - Class Action Antitrust Lawsuit

Post by BillWalters »

Spoken like someone with an Upton Sinclair problem.

Here’s a law firm that is going to make $2,800,000,000 on the Roundup litigation, of which $800 million is from the class action.

https://www.law.com/2021/02/05/money-gr ... 0405082724

Let’s be generous and say the lawyers are worth $1,000 per hour. That’s 800,000 hours of billing, equal to 400 lawyers billing 2,000 hours on just that case for an entire year.

Give me a break.
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Re: Thoughts About Blue Cross Blue Shield Settlement - Class Action Antitrust Lawsuit

Post by CABob »

Today I received an email providing my claim number for the settlement. I assume this means that I will receive the $0.05 check when it is issued.
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Re: Thoughts About Blue Cross Blue Shield Settlement - Class Action Antitrust Lawsuit

Post by FiveK »

talzara wrote: Fri Apr 23, 2021 5:45 pm https://www.bcbssettlement.com/faq
Thanks for posting that. Thought being the "beneficiary" of a deceased BCBS premium payer was disqualifying, but FAQ #40 cleared that up.
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Re: Thoughts About Blue Cross Blue Shield Settlement - Class Action Antitrust Lawsuit

Post by snailderby »

CABob wrote: Thu May 06, 2021 6:07 pm Today I received an email providing my claim number for the settlement. I assume this means that I will receive the $0.05 check when it is issued.
Haha. That sounds about right.
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Re: Thoughts About Blue Cross Blue Shield Settlement - Class Action Antitrust Lawsuit

Post by Trader Joe »

I received my Claim Number today (May 6, 2021) via email.

This is great news!
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Re: Thoughts About Blue Cross Blue Shield Settlement - Class Action Antitrust Lawsuit

Post by water2357 »

Is someone a member of this lawsuit class in the following situations:

Their employer is/was a BCBS plan providing BCBS self funded coverage but charging employees premiums?

The person only had ancillary coverage with BCBS, such as Dental or Vision and paid premiums directly to BCBS?

The person had employer provided retiree medical coverage (not Medigap) and the person paid all the premiums?

The person had BCBS Medigap coverage? (Someone above indicated this is not part of the settlement, correct?)

The person had BCBS drug coverage and paid the premiums (both before and after retirement)?

Asking for several people who have not received any class action notice as yet.
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Re: Thoughts About Blue Cross Blue Shield Settlement - Class Action Antitrust Lawsuit

Post by Makefile »

water2357 wrote: Sat May 08, 2021 7:40 pm The person had BCBS Medigap coverage? (Someone above indicated this is not part of the settlement, correct?)
That's a good question. I have a relative who had only Medigap coverage through a BCBS licensee but still received the notice. I noticed the settlement excluded "Medicare/Medicaid" plans. I wonder whether "Medicare" does include Medigap, or if it could possibly mean only Medicare Advantage and Part D plans.
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Re: Thoughts About Blue Cross Blue Shield Settlement - Class Action Antitrust Lawsuit

Post by cogito »

I filed because I had a plan for a year in 2012, and in 2015. Could not be bothered to go back and look up my member number or premiums paid, I have no idea. I figure they'll figure it out and send me 100 bucks or not. Finger crossed. They gave me a number so I assume they know more about what I'm owed than I do. Class action lawsuits are just cheap scratch off tickets with low payouts IMO :annoyed
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Re: Thoughts About Blue Cross Blue Shield Settlement - Class Action Antitrust Lawsuit

Post by water2357 »

Agree, I don't know what they mean by Medicare/Medicaid plan. A Medicare Advantage plan involves a negotiated fee provider network, so does a Part D plan, only here it's negotiated fee pharmacy benefits management involving discounts/rebates/etc. A Medigap plan allows access to all Medicare providers at Medicare allowed rates. A Medicaid Plan also has negotiated provider networks and generally involves a contract with a particular State, this is similar to a CHIP Plan (Children's Health Insurance Plan) arrangement. The BCBS plan sets up the provider network and negotiates with the providers what they will be paid, the State negotiates with the BCBS plan how much of a premium the State will pay for each Medicaid/CHIP member. There is also the Federal Employees Plan (FEP), another government plan.

Is it possible that the only people that the BCBS plans turned over contact information on or where contact information was readily available were the individual market ACA plans (although that doesn't explain the Medigap notice)? So, more people may be eligible but only those who purchased coverage through the various ACA websites/market places are getting the notices?
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Re: Thoughts About Blue Cross Blue Shield Settlement - Class Action Antitrust Lawsuit

Post by SlowMovingInvestor »

talzara wrote: Fri Apr 16, 2021 6:11 pm
The $178 is an example based on $1.78 billion in settlement funds and $10 billion of premiums. It is not the amount you will actually receive.

The actual premiums could be much higher. Even a small Blue Cross licensee like Blue Cross of Idaho collected $1.8 billion in premiums in 2020. The largest Blue Cross licensee, Anthem, collected $74 billion in 2020. That's just in one year, and the settlement covers 13 years of premiums.

Although not everybody will file a claim, individuals and fully-insured companies are in the same settlement pool. Unless the companies plan to opt out, the settlement funds will be greatly diluted.
Just to be sure I understand this -- premiums paid by companies (*) are also included in the pool, and in most cases companies pay the bulk of premiums, and they have health care administrators who will very likely file. All that means, not much for individual premiums.

(*) You said fully insured, so I'm assuming self insured companies aren't in this pool ? That might shrink the pool a little, but I'm not sure what %age of companies self insure.
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Re: Thoughts About Blue Cross Blue Shield Settlement - Class Action Antitrust Lawsuit

Post by tibbitts »

I had a BCBS policy for my small business, through the local chamber of commerce. Two of us were LLC members and for part of the time both of us had BCBS coverage. Later in the period only one of us was covered. The business no longer exists - so no checking account, etc. The notice postcard was addressed to me personally, no reference to the business. What's the correct way to handle this?
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Re: Thoughts About Blue Cross Blue Shield Settlement - Class Action Antitrust Lawsuit

Post by mkc »

snailderby wrote: Thu May 06, 2021 7:43 pm
CABob wrote: Thu May 06, 2021 6:07 pm Today I received an email providing my claim number for the settlement. I assume this means that I will receive the $0.05 check when it is issued.
Haha. That sounds about right.
Hmmm... the e-mail my spouse received with a claim number was addressed to a different name (not even close). I wonder who will get the $0.05 check?
talzara
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Re: Thoughts About Blue Cross Blue Shield Settlement - Class Action Antitrust Lawsuit

Post by talzara »

SlowMovingInvestor wrote: Sat May 08, 2021 9:37 pm Just to be sure I understand this -- premiums paid by companies (*) are also included in the pool, and in most cases companies pay the bulk of premiums, and they have health care administrators who will very likely file. All that means, not much for individual premiums.
Employees will get a share of the settlement based on the fraction of premiums that they paid, or the default 15% allocation (34% for families).

If a company files a claim and some of its employees do not, the company will get the employees' share of the settlement. However, employees cannot get the company's share of the settlement if the company fails to file.

Individuals who purchased directly from the insurance company will get a 100% allocation since there is no employer to split it with.
SlowMovingInvestor wrote: Sat May 08, 2021 9:37 pm (*) You said fully insured, so I'm assuming self insured companies aren't in this pool ? That might shrink the pool a little, but I'm not sure what %age of companies self insure.
Fully-insured companies, employees, and individuals are in the same pool. They will be splitting 93.5% of the cash settlement.

Self-insured companies and employees are in a separate pool that will be splitting 6.5% of the cash settlement.
talzara
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Re: Thoughts About Blue Cross Blue Shield Settlement - Class Action Antitrust Lawsuit

Post by talzara »

water2357 wrote: Sat May 08, 2021 7:40 pm Is someone a member of this lawsuit class in the following situations:

Their employer is/was a BCBS plan providing BCBS self funded coverage but charging employees premiums?

The person only had ancillary coverage with BCBS, such as Dental or Vision and paid premiums directly to BCBS?

The person had employer provided retiree medical coverage (not Medigap) and the person paid all the premiums?

The person had BCBS Medigap coverage? (Someone above indicated this is not part of the settlement, correct?)

The person had BCBS drug coverage and paid the premiums (both before and after retirement)?
Self-funded plans are in a separate pool that will split 6.5% of the cash settlement. Employees who paid premiums are entitled to a share of the settlement based on the actual premium paid, or the default 15% allocation (34% for family coverage).

The settlement excludes standalone dental and vision plans. It does not exclude pharmaceutical plans.

The settlement excludes Medicare plans. It includes non-Medicare retiree group medical coverage.
talzara
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Re: Thoughts About Blue Cross Blue Shield Settlement - Class Action Antitrust Lawsuit

Post by talzara »

Makefile wrote: Sat May 08, 2021 9:13 pm That's a good question. I have a relative who had only Medigap coverage through a BCBS licensee but still received the notice. I noticed the settlement excluded "Medicare/Medicaid" plans. I wonder whether "Medicare" does include Medigap, or if it could possibly mean only Medicare Advantage and Part D plans.
water2357 wrote: Sat May 08, 2021 9:30 pm Agree, I don't know what they mean by Medicare/Medicaid plan. A Medicare Advantage plan involves a negotiated fee provider network, so does a Part D plan, only here it's negotiated fee pharmacy benefits management involving discounts/rebates/etc. A Medigap plan allows access to all Medicare providers at Medicare allowed rates.
Medigap, Part D, and Advantage plans are all excluded from this settlement.
The following are excluding [sic] from the Damages Class: “Government Accounts, Medicare Accounts of any kind ...

https://www.bcbssettlement.com/admin/se ... nline=true
talzara
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Re: Thoughts About Blue Cross Blue Shield Settlement - Class Action Antitrust Lawsuit

Post by talzara »

tibbitts wrote: Sat May 08, 2021 9:40 pm I had a BCBS policy for my small business, through the local chamber of commerce. Two of us were LLC members and for part of the time both of us had BCBS coverage. Later in the period only one of us was covered. The business no longer exists - so no checking account, etc. The notice postcard was addressed to me personally, no reference to the business. What's the correct way to handle this?
It is better to file more claims rather than fewer claims. If your LLC does not file, the chamber of commerce might get your LLC's share of the settlement.
  1. Your chamber of commerce can fill out Section A of the claim form as a purchasing entity.
  2. Your LLC can fill out Section A as a business.
  3. The LLC's employees can fill out Section C.
Since the LLC has been dissolved, state law will determine what you should do with the check. In many cases, the LLC members may be able to endorse the check over to themselves.
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