Blue Cross settles antitrust lawsuit with $2.8 billion payout

Attorney Complaints
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Tom Methvin, Principal, Managing Attorney | Beasley Allen, law firm, GA

A significant $2.8 billion settlement has been reached in the Blue Cross Blue Shield antitrust case, marking a historic moment in U.S. healthcare history. Announced on October 14, 2024, by the provider side settlement team, this resolution concludes a lengthy legal battle involving healthcare providers nationwide. The negotiation process was led by a dedicated committee that included Beasley Allen’s Dee Miles.

The settlement encompasses all Blue Cross and Blue Shield entities across the United States and includes both a $2.8 billion cash payment into a settlement fund and substantial investments aimed at system improvements for healthcare providers.

This agreement seeks to address allegations that the Blues violated antitrust laws through market division and price fixing. As part of the settlement, significant changes will be made to the BlueCard Program to improve claims processing, enhance payment methods to providers, and reduce administrative burdens.

Healthcare providers stand to benefit from increased opportunities to contract with the Blues, reduced administrative tasks, and more efficient claims processing and payments.

To ensure compliance with the terms of the settlement, an appointed Monitoring Committee will oversee the Blue Cross and Blue Shield plans along with the Blue Cross Blue Shield Association for five years following final court approval. The Provider Plaintiffs formed a work group that included representatives from various types of healthcare providers who offered valuable input throughout negotiations.

Key figures such as Beasley Allen’s Dee Miles, Rebecca Gilliland, and Jessi Haynes were instrumental during the discovery phase of this case, uncovering crucial documents and testimony that facilitated this landmark agreement.

The Court is anticipated to review the Motion for Preliminary Approval in November. Subsequently, formal notices will be sent to all class members on a date determined by the Court.