Understanding BCBS Settlement Payments and What They Mean for You
What the BCBS settlement is and who might receive a payment
The BCBS settlement refers to a class action lawsuit against Blue Cross Blue Shield (BCBS) companies. The settlement requires certain BCBS insurers to pay money to people who were overcharged for out-of-network medical care between specific years. The settlement does not cover in-network care, and it does not cover all BCBS plans — only those operated by certain regional BCBS companies named in the lawsuit.
If you received out-of-network medical bills from a BCBS-insured plan during the covered time period and paid more than you should have because of how the insurer calculated what they would reimburse, you may be part of the class. You do not have to do anything to receive a payment if you are part of the class — the settlement administrator will locate you using insurance records and send payment by check or direct deposit.
The amount each person receives depends on how many valid claims they have in the settlement period and how much they were overcharged per claim. People with more claims or larger overcharges receive larger payments. Payments typically range from under $100 to several hundred dollars per person, though some people receive more.
Key Takeaways
- BCBS settlement payments go to people who were overcharged for out-of-network medical care under specific BCBS insurance plans during the lawsuit period.
- You do not need to take action to receive payment — the settlement administrator finds you using insurance company records and mails or deposits the money.
- Payment amounts vary based on how many out-of-network claims you had and how much you were overcharged on each one.
- If you receive a check, you must cash or deposit it within a set time frame — usually two to three years — or the money goes back to the settlement fund.
How the settlement administrator finds and contacts you
The settlement administrator uses records from the BCBS companies named in the lawsuit to identify people in the class. They match names, addresses, and policy numbers from the insurance company's files to locate you. If you have moved since you held the BCBS plan, the administrator may use a skip-tracing service to find your current address.
You will receive notice by mail at the address on file with the insurance company or at your updated address if the administrator located you through skip-tracing. The notice will tell you how much your payment is, how you will receive it (check or direct deposit), and the deadline to cash or deposit it. Some settlements also send email notices if an email address is on file.
If you do not receive notice but believe you should be part of the settlement, you can contact the settlement administrator directly. The administrator's contact information and the case name appear on the BCBS company's website or in court documents filed in the case. You will need your policy number and dates of service to verify your claim.
When and how you will receive your payment
Settlement payments are usually mailed in phases over several months or years, depending on how many people are in the class and how long it takes to verify claims. The first payments typically go out within six months to a year after the settlement is approved by the court. Later payments may take longer as the administrator processes more claims.
You will receive your payment by check or direct deposit, depending on what the settlement terms allow and what information the insurance company has on file. If you receive a check, you must deposit or cash it by the deadline printed on the check — usually two to three years from the mailing date. If you do not cash the check by that date, the money reverts to the settlement fund and you lose the right to it.
If you prefer direct deposit but the settlement only offers checks, or if you want to update your mailing address, contact the settlement administrator as soon as you receive notice. Provide your policy number and the case name so they can update your payment method or address in their system.
What to do if you receive a settlement check
When your check arrives, write your name on the back and deposit it into your bank account or cash it at your bank or a check-cashing service. Do not delay — the deadline to cash or deposit the check is printed on the front or back of the check itself. If you miss the deadline, the check becomes void and you cannot cash it later.
Keep a record of when you deposited the check and the confirmation number or receipt from your bank. If the check is lost or stolen before you deposit it, contact the settlement administrator immediately with your case number and policy number. They can issue a replacement check, but you must request it before the original deadline passes.
If you have questions about the check amount or whether you should have received a larger payment, you can file a claim objection with the settlement administrator before the objection deadline. The deadline is usually listed in the settlement notice. You will need to provide documentation of your out-of-network claims and what you paid out of pocket.
What happens if you do not receive notice or your check is lost
If you believe you should be part of the settlement but never received notice, contact the settlement administrator using the contact information in the settlement documents or on the BCBS company's website. Have your policy number, the dates you held the policy, and the dates of any out-of-network medical services ready. The administrator can search their records to see if you are in the class and resend your notice and payment.
If your check was lost in the mail or you misplaced it before depositing, contact the settlement administrator before the cash-by deadline. Explain what happened and provide your policy number and case name. The administrator can issue a replacement check, but you must request it in time — once the deadline passes, they cannot issue a new check.
If you moved and did not receive your notice or check, update your address with the settlement administrator as soon as you realize the mail went to an old address. Provide your current address and policy number. The administrator may be able to locate your original check or issue a new one if the deadline has not passed.
Understanding the lawsuit and which BCBS plans are covered
The BCBS settlement covers overcharges that happened when BCBS companies used outdated or incorrect data to calculate how much they would reimburse for out-of-network care. Instead of paying based on what doctors actually charged in your area, some BCBS plans used reference-based pricing or outdated fee schedules. This left patients responsible for the difference between what the insurer paid and what the doctor charged.
The settlement does not cover all BCBS companies or all time periods. It covers specific regional BCBS plans during the years named in the lawsuit. Your state's BCBS company may or may not be included. To find out whether your plan is covered, look at your old insurance card or policy documents to see which BCBS company issued it, then search the settlement administrator's website or the court case documents for a list of covered plans and dates.
The lawsuit does not cover in-network care, preventive services, or claims where you chose to see an out-of-network doctor and signed a waiver agreeing to pay the difference. It only covers situations where you were sent to an out-of-network provider without a choice, or where the insurer's reimbursement calculation was wrong.
Frequently Asked Questions
Do I have to pay taxes on my settlement payment?
Settlement payments for overcharged insurance claims are generally not taxable income, but you should consult a tax professional or review IRS guidance for your specific situation. The settlement administrator may send you a tax form if required, but the rules vary depending on the type of claim and your state. Keep your settlement notice and any tax documents for your records.
What if I think my payment amount is wrong?
Contact the settlement administrator with your policy number and case name. Ask them to review your claim calculation and explain how they arrived at your payment amount. If you disagree, you can file an objection before the deadline listed in your settlement notice. You will need documentation of your out-of-network claims and what you paid.
Can I transfer my settlement payment to someone else?
No. Settlement payments are issued to the person named in the insurance policy. If you are the beneficiary or dependent on someone else's policy, the payment goes to the policy holder. If the policy holder has passed away, contact the settlement administrator to discuss how to handle the payment.
What if I never had a BCBS plan during the settlement period?
You are not part of the class and will not receive a payment. The settlement only covers people who held a covered BCBS plan during the specific years named in the lawsuit. If you are unsure whether your old plan was a BCBS plan, check your old insurance cards or policy documents for the company name.
How long do I have to cash my settlement check?
The deadline is printed on your check, usually two to three years from the mailing date. Once that date passes, the check becomes void and you cannot cash it. If you have not received your check or cannot locate it, contact the settlement administrator before the deadline to request a replacement.