BCBSA Class Action Lawsuit: Settlement Update

After an appeal effort, the 11th Circuit has upheld the $2.67 billion settlement in the massive class action lawsuit against the Blue Cross Blue Shield Association (BCBSA). See our previous article on this lawsuit and settlement here.

Barring some other unforeseen development, this means employers who previously filed claims for their share of the settlement proceeds should start receiving payments sometime in the first part of 2024. The official BCBS settlement website indicates that claimants should check back in February 2024 for additional updates.


Note: the deadline to file a claim expired November 5, 2021

Employers who receive such settlement proceeds should be aware that a portion of those funds may be plan assets under ERISA if employees contributed towards the cost of the health plan during the time period covered by the settlement, and the employer may need to share the proceeds with health plan participants.

Following the DOL’s guidelines for handling MLR rebates should ensure the employer satisfies its obligations under ERISA with respect to these settlement funds. Click here to read our previously posted blog on the topic of MLR rebates.

About Michelle Cammayo, Compliance National Practice Leader, Employee Benefits

Michelle Cammayo has close to 20 years of Employee Benefits experience specializing in all lines of health and welfare benefits. Today, Michelle works closely with clients and partners to provide guidance in areas of the law including ERISA, HIPAA, COBRA, FMLA and PPACA. She is also the IMA National Practice Leader for Compliance and endeavors to ensure IMA helps its clients manage and eliminate risk in the most effective manner. She is passionate about educating others and her passion for this shined in the COVID era where Michelle conducted weekly and then monthly webinars providing guidance to employers. Her podcast, Cammayo’s Compliance Talk, has gained popularity in the last three years to become a favorite amongst our clients. She also contributes regularly to our Blog and has authored several articles for industry-related newsletters. Michelle’s consultative approach with employers provides practical advice as employers endeavor to be compliant.

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