In a recent development, the Eleventh Circuit Court of Appeals has upheld the approval of a settlement agreement in the case involving the Blue Cross Blue Shield Association. According to court documents, this legal battle dates back over a decade when subscribers of health insurance took legal action against Blue Cross, alleging violations of the Sherman Antitrust Act. The lawsuit accused Blue Cross of restricting competition among its member plans. (Source)
Court documents reveal after years of litigation, the case was consolidated into multidistrict litigation in the Northern District of Alabama, specifically focusing on the subscriber-track litigation. In 2018, the district court ruled in favor of subscribers, deeming Blue Cross's competitive restraints as "necessarily illegal."
Further outlined in the court documents, a settlement agreement was reached in 2017 following extensive negotiations. This agreement created two classes: a damages class and an injunctive relief class. The damages class includes individual members, insured groups, and self-funded accounts that purchased Blue-Branded Commercial Health Benefit Products during a specified period. The injunctive relief class aims to bring structural reforms to enhance competition among Blue Cross members. (Source)
According to court documents, a monitoring committee was established to oversee compliance with these structural changes. Additionally, a $2.67 billion common fund was set up to cover damages, administrative costs, and attorneys' fees and costs. The allocation of the settlement fund distributed 93.5 percent to fully insured claimants and 6.5 percent to self-funded claimants based on various factors. The plan of distribution outlined how damages would be calculated and disbursed for each type of claimant, with attorneys' fees and costs capped at 25 percent of the settlement fund. (Source)
Despite objections raised during the appeal process, the Eleventh Circuit Court of Appeals ultimately upheld the district court's approval of the settlement agreement. "Because the district court did not abuse its discretion, we affirm," stated William Pryor of the Eleventh Circuit. This decision ensures that the settlement, aimed at addressing antitrust claims against Blue Cross Blue Shield Association, will proceed as planned. (Source)
