Blue Cross Blue Shield is set to begin issuing nearly $2 billion in payouts to claimants in a long-running class action lawsuit.
The payments are expected to begin this month and could see individuals receiving checks worth hundreds of dollars.
Here’s what you need to know about the settlement and its massive payout.
What is the settlement about?
The settlement payout is the culmination of a nearly 14-year legal battle between Blue Cross Blue Shield and its subscribers.
Blue Cross Blue Shield (BCBS) operates a federation of health insurance companies under its umbrella. As of 2026, there are 33 such BCBS-affiliated health insurers.
Back in 2012, individuals who subscribed to policies from various BCBS health insurers sued Blue Cross Blue Shield, alleging that the company engaged in anti-competitive practices that led to higher health insurance premiums.
Specifically, subscribers alleged that Blue Cross Blue Shield got BCBS insurers to agree not to offer their services in overlapping jurisdictions, limiting competition. And since more competition usually lowers prices, that kept premiums higher than they otherwise would have been.
Given the number of lawsuits alleging this and related claims, the individual litigation received class-action status in 2013.
By 2020, Blue Cross Blue Shield agreed to settle the claims for $2.67 billion, rather than incur additional legal costs and a potentially more costly outcome if the case went to trial.
It’s important to note, however, that no verdict was ever rendered against Blue Cross Blue Shield, and the company has denied any wrongdoing.
After 2020, several objections were made to the settlement, but following further court proceedings, the settlement was upheld.
Now, nearly 14 years after the first legal actions were taken, Blue Cross Blue Shield is finally sending out billions in payments to affected parties.
Who is included in the BCBS settlement?
Despite agreeing to a $2.67 billion settlement, Blue Cross Blue Shield will pay out less than $2 billion to affected subscribers.
This is because the difference will go toward court costs, administrative costs, and legal fees. The remaining roughly $1.9 billion is being distributed to claimants.
Blue Cross Blue Shield has also agreed to change the way it does business to avoid similar issues in the future.
How do I know if I am included in the settlement?
In order to be included in this settlement, you would have needed to file a claim by 2021.
According to the settlement’s official website, successful claimants include people who had an Individual, Insured Group, or Self-Funded Account with a BCBS company between February 2008 and October 2020.
The policy dates for those with Self-Funded Accounts are September 1, 2015, through October 16, 2020.
If you have forgotten whether you may have filed a claim years ago, not to worry. Claimants have been notified through email and postal mail, so be sure to check both if you think you are covered under the settlement.
How much can I get from the settlement?
That depends on how many people ultimately filed a claim, among other factors specific to your policy.
The more people who filed, the less settlement money there will be to go around. The settlement agreement also states that those calculated to receive less than $5 will receive no payment at all.
TopClassActions has stated that around 6 million people filed claims. That suggests that the average payout could be around $333 per claim, but again, final payouts will depend on an individual’s circumstances.
When will payments be made?
Payments will begin being sent out this month. You will receive your payment based on the method you selected when you filed a claim. Those methods include physical checks, pre-paid cards, or digital payments.