Blue Cross Blue Shield Association has agreed to pay $2.8 billion to settle a long-running antitrust class action brought by hospital systems, physicians, and other healthcare providers, according to a federal court filing in Alabama. The plaintiffs accused the insurer of underpaying them for reimbursements.
The settlement marks the largest of its kind in healthcare antitrust litigation. Although Blue Cross Blue Shield denied any wrongdoing, the company agreed to the settlement and outlined operational changes aimed at resolving the litigation and moving forward.
Lead attorneys for the plaintiffs, Joe Whatley and Edith Kallas, noted that the proposed settlement would overhaul Blue Cross’s BlueCard program, which handles the processing of claims submitted by providers. The settlement remains subject to approval by U.S. District Judge R. David Proctor. The lawsuit, initially filed in 2012, accused Blue Cross and its affiliates of dividing the U.S. into exclusive regions where they did not compete, a tactic that allegedly inflated insurance costs while reducing provider reimbursements.
As part of the settlement, Blue Cross Blue Shield will establish a system-wide information platform to enhance transparency, efficiency, and accountability in member benefits, eligibility verification, and claims tracking. The agreement will also provide healthcare providers with expanded contracting opportunities.
In addition to the financial settlement, Blue Cross Blue Shield will invest hundreds of millions of dollars in non-monetary improvements, including the development of the new platform.
The settlement applies to U.S. healthcare providers—including hospitals and physicians—who treated Blue plan patients between July 2008 and October 2024. Plaintiffs’ attorneys are expected to request up to $700 million in legal fees.
This agreement follows a related 2020 settlement in which Blue Cross agreed to pay $2.7 billion to resolve antitrust claims from commercial and individual policyholders. The U.S. Supreme Court upheld that settlement in June.
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