Historic $2.8 Billion Antitrust Settlement Reached in U.S. Healthcare

On October 14, 2024, the largest antitrust settlement in U.S. healthcare history was announced—a $2.8 billion agreement as part of the Blue Cross Blue Shield (BCBS) multidistrict litigation (MDL). This lawsuit, filed in 2012 by healthcare providers nationwide, challenged BCBS's practices, alleging that the insurer and its affiliates unlawfully divided the country into exclusive territories where they avoided competing with one another. Providers claimed this conspiracy inflated insurance costs while suppressing reimbursements to healthcare professionals.

The antitrust settlement is the result of years of litigation and negotiations by a committed legal team, including Christy Crow and Lynn Jinks of Jinks Crow. Their efforts, together with others on the leadership team, led to this groundbreaking agreement, which involves all Blue Cross and Blue Shield entities across the U.S.

In addition to the $2.8 billion cash settlement fund, BCBS will invest hundreds of millions of dollars in non-monetary reforms. This includes developing a new, system-wide information platform to streamline member benefits, verify eligibility, and improve claims tracking. These improvements will enhance transparency, efficiency, and accountability across the system.

Providers will also benefit from increased contracting opportunities with BCBS, marking a shift towards more competitive practices. These changes aim to foster better relationships between providers and BCBS while addressing the anti-competitive behavior that prompted the lawsuit.

This latest settlement comes after BCBS agreed in 2020 to pay $2.7 billion to resolve related antitrust claims from commercial and individual subscribers, a deal upheld by the U.S. Supreme Court in June 2024. The current settlement, which requires court approval, represents a significant victory for healthcare providers and a step towards reshaping the industry’s competitive landscape.