Blue Cross Blue Shield insurers have agreed to pay $2.8 billion to resolve antitrust class-action claims by hospital systems, physicians and other health providers alleging they were underpaid for reimbursements, the plaintiffs said in an Alabama federal court filing on Monday.
The settlement is the largest ever for a health care antitrust case, they added.
The Blue Cross Blue Shield Association denied the allegations in a statement, but said it agreed to the settlement and will make operational changes to “put years of litigation behind us.”
The providers’ lead attorneys, Joe Whatley and Edith Kallas, said in a statement the proposed settlement would “transform” the BlueCard program through which providers submit claims.
The agreement is subject to approval from U.S. District Judge R. David Proctor.
The Blue Cross Blue Shield system of 33 insurers includes Blue Cross and Blue Shield of Minnesota. Minnesota’s Blues plan and the national association both declined to comment on the settlement.
The Minnesota Star Tribune previously reported insurance agents and analysts differ on whether they think individuals and businesses in Minnesota would recover meaningful sums from such a settlement.
The health providers first sued the Blues plans in 2012, claiming the Blue Cross Blue Shield Association and its affiliates divided the country into exclusive areas where they did not compete with each other. The lawsuit said the nationwide conspiracy increased the cost of insurance and drove down reimbursements.
