What to Know About the Blue Cross Settlement Payment
What the Blue Cross settlement payment is and who might receive it
The Blue Cross settlement refers to a legal agreement reached in 2022 between Blue Cross Blue Shield (BCBS) and a group of state attorneys general. The settlement required BCBS to pay out money over several years to resolve claims about how the company denied or delayed coverage for certain medical services. If you were a BCBS member during the years covered by the settlement, you may be may have access to to receive a payment.
The settlement does not require you to do anything to receive your share. BCBS is responsible for identifying members who may have access to and sending payments automatically. However, you need to understand what happened, how much money is involved, and what to watch for so you don't miss a payment or fall for a scam.
Key Takeaways
- Blue Cross is sending settlement payments automatically to people who held BCBS coverage during the years the company allegedly denied or delayed claims.
- You do not need to submit paperwork or contact BCBS to receive your payment — the company has your information on file.
- Payments are being sent by check or direct deposit over a period of years, not all at once.
- Scammers are impersonating BCBS to collect personal information or money; real settlement payments never ask you to pay a fee or verify your Social Security number by phone.
- If you do not receive a payment you believe you are owed, you can contact the settlement administrator to check your status.
How much money is involved and who qualifies
The total settlement amount is approximately $2.67 billion, to be paid out over several years. The amount each person receives depends on how many claims were affected during their time as a BCBS member. People who had more denied or delayed claims receive larger payments; those with fewer affected claims receive smaller amounts.
You likely may have access to if you were enrolled in a Blue Cross Blue Shield health plan at any point between January 1, 2008 and December 31, 2017. The settlement covers specific types of claims — primarily denials or delays related to mental health and substance abuse services, as well as some other medical services. BCBS has already identified members from its records, so you do not need to prove you were a member or that your claims were affected.
How and when you will receive your payment
BCBS is sending payments by check or direct deposit, depending on what information the company has on file. If you have a current address with BCBS, a check will be mailed to you. If you set up direct deposit with the company for any reason, your payment may be deposited directly into that account.
Payments are not being sent all at once. The settlement is being distributed over multiple years, so you may receive your payment months or even years after the settlement was announced. There is no set date when all payments will be complete. If you have not received a payment and believe you should have, you can contact the settlement administrator — not BCBS directly — to check the status of your claim.
How to verify a payment is real and avoid settlement scams
Scammers have already begun impersonating BCBS and the settlement administrator to steal personal information and money. A real settlement payment will never ask you to pay a fee, provide your Social Security number over the phone, or click a link in an email to "verify" your information.
If you receive a call, email, or text claiming to be from Blue Cross or the settlement administrator, hang up or delete it. Do not provide any personal information. Real settlement payments come by mail or direct deposit only — not through phone calls or unsolicited emails. If you want to check on your payment status, look up the settlement administrator's contact information yourself rather than using a number or website provided in an unsolicited message.
What to do if you believe you should receive a payment
Start by confirming you were a BCBS member during the settlement period (January 1, 2008 through December 31, 2017). Check old insurance cards, explanation of benefits statements, or tax documents that might show your coverage. If you were a member, BCBS has your information and will send a payment without you needing to do anything.
If you have not received a payment after a reasonable amount of time, or if you want to confirm your payment status, contact the settlement administrator. The administrator's contact information is available through the official settlement website. When you contact them, have your former BCBS member ID number ready if you can find it, along with your name and date of birth. Do not rely on phone numbers or websites from emails or calls you receive — look up the contact information yourself.
What happens if you receive a check you do not cash
Settlement checks typically expire after a certain period — usually 180 days to one year, depending on the state where you live. If your check expires without being cashed, the money does not automatically go back to BCBS. Instead, it is held by the settlement administrator or may be transferred to your state's unclaimed property program.
If your check has expired, you can contact the settlement administrator to request a replacement check or to have your payment sent by direct deposit instead. Keep any settlement check you receive in a safe place until you are ready to deposit it. If you lose a check, contact the administrator immediately to report it and request a replacement.
Understanding the settlement timeline and what comes next
The settlement was announced in 2022, but payments began rolling out gradually and will continue for several years. There is no fixed end date for all payments to be distributed. Some people may receive their payments within months of the announcement, while others may wait years depending on how the administrator processes claims and how many people are in the queue.
Once you receive your payment, that is the end of your involvement with the settlement. You do not need to report it to anyone or take any further action. The payment is yours to keep. If you have questions about how the settlement money should be reported for tax purposes, consult a tax professional, as tax treatment may vary depending on your situation.
Frequently Asked Questions
Do I have to do anything to get my settlement payment?
No. BCBS identified members from its own records and is sending payments automatically. You do not need to submit paperwork, contact the company, or verify your information. If you were a BCBS member during the settlement period, a payment will be sent to you without any action on your part.
What if I moved and BCBS does not have my current address?
If your check is returned as undeliverable, contact the settlement administrator with your current address. They can update your information and resend the payment. You can also file a claim with your state's unclaimed property program if the check ends up there.
Is this payment taxable income?
Settlement payments for denied or delayed medical claims may or may not be taxable depending on what the money represents and your specific situation. Consult a tax professional or contact the settlement administrator for guidance on how to report the payment on your tax return.
How do I know if a call or email about the settlement is a scam?
Real settlement payments never ask you to pay a fee, verify your Social Security number by phone, or click links in emails. If someone contacts you claiming to represent BCBS or the settlement, hang up or delete the message. Look up the settlement administrator's contact information yourself if you want to check your status.
What if I never received a payment and I was a BCBS member during that time?
Contact the settlement administrator with your name, date of birth, and former member ID if you have it. They can check whether a payment was sent and to what address. If a check was mailed but never cashed, they can issue a replacement or arrange direct deposit instead.