Blue Cross Blue Shield class-action settlement delayed- this time to the Supreme Court
The long-awaited distribution of a $2.67 billion settlement of antitrust claims against Blue Cross Blue Shield insurance plans, including Highmark, has been delayed once again.
A status update on the settlement's website, said that a settlement class member who objected to the settlement has appealed the decision to the U.S. Supreme Court.
David Behenna, who filed the appeal, argued that the $667 million in legal fees and costs won by the plaintiffs’ lawyers was too high, according to Reuters. Behenna said the fee should be no more than $194 million, a figure reached by multiplying the number of hours lawyers said they worked by a prevailing hourly rate.
In March, attorneys for Home Depot also filed a challenge to the settlement, telling the justices that the terms are too sweeping and will harm the ability of future private parties to sue Blue Cross Blue Shield over alleged violations of competition law, Reuters reported.
The plaintiffs' lawyers and Blue Cross Blue Shield have not yet responded to Home Depot's petition, Reuters reported.
U.S. Appeals Court upheld settlement in October
The challenges come after the 11th U.S. Circuit Court of Appeals upheld the settlement on Oct. 25. The court's three-judge panel wrote that Home Depot did not persuade the court that the settlement would harm the power of antitrust enforcers or others to bring claims against Blue Cross Blue Shield in the future, according to Reuters.
The panel also said the settlement's plan to set aside $667 million in legal fees and expenses "fell within the range of reasonableness," Reuters reported.
This new appeal will delay distribution of the settlement until it is resolved. The settlement website recommended checking back in November for additional updates.
The settlement ended litigation that began in 2013 when a class-action lawsuit was filed. It claimed that the BC/BS plans illegally entered into an agreement not to compete with each other, and to restrict competition among themselves.
As part of the settlement, the plans deny all allegations of wrongdoing.
How much can people expect to receive from the settlement?
About six million people, including many in northwestern Pennsylvania, filed claims by the November 2021 deadline.
As a result, they can expect to receive about $333 per claim.
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This article originally appeared on Erie Times-News: Blue Cross Blue Shield antitrust settlement appealed to Supreme Court
