Monumental Settlement in Blue Cross Blue Shield Antitrust Case
Monumental. The largest antitrust settlement in U.S. healthcare history, $2.8 billion, was announced on October 14, 2024, by the Provider side settlement team in the Blue Cross Blue Shield MDL, a long-running antitrust lawsuit representing healthcare providers nationwide. This landmark settlement was negotiated over several years by a dedicated committee, including Bailey Glasser partners Michael Murphy and Eric Snyder.
The settlement involves all Blue Cross and Blue Shield entities across the country and includes a $2.8 billion cash payment into a settlement fund, as well as investments by the Blues of hundreds of millions of dollars in system improvements for the benefit of providers.
What Will The Settlement Achieve?
The settlement aims to resolve claims that the Blues violated antitrust laws by dividing markets and fixing prices.
It also introduces important changes to the BlueCard Program, which will:
- Improve how claims are processed
- Enhance payment methods to providers
- Reduce administrative burdens and inefficiencies
Benefits For Healthcare Providers
The settlement provides healthcare providers with:
- More opportunities to contract with the Blues
- Reduced administrative burdens
- Increased efficiency in claims processing and payments
The Blue Cross and Blue Shield plans, along with the Blue Cross Blue Shield Association, will be held accountable by an appointed Monitoring Committee for five years after the settlement’s effective date, following the Court’s final approval. The Provider Plaintiffs formed a work group comprising various types of providers, such as representatives from large healthcare systems, teaching hospitals, rural hospitals, physicians, ancillary providers, and medical and hospital associations which gave meaningful guidance throughout the process.
Key Contributors & Next Steps
Bailey Glasser’s Michael Murphy and Eric Snyder also played key roles in the discovery phase, uncovering critical documents and testimony that led to this landmark settlement.
The Court is expected to review the Motion for Preliminary Approval in November. A formal notice will be sent to all class members at a later date determined by the Court.
