In multidistrict litigation in Alabama federal court, the nation’s Blue Cross Blue Shield insurers have tentatively agreed to a $2.67 billion class settlement fund and other reforms to address anti-competitive practices. Plaintiffs alleged the Blues used a national cap on revenues, direct-contracting restrictions and other unlawful practices to limit competition and give preference to BCBS-related services.  Burns Charest is the proposed lead counsel for a sub-class of entities that contracted with the Blue plans for Administrative Services Only (ASOs).  

Commenting on the settlement, Warren Burns stated:  “This is truly a historic settlement that will bring much needed competition to our nation’s health insurance market.  We are honored to represent the ASOs in this litigation.”

According to coverage in Law360, the case began in 2012 with actions against the BCBS Association and member plans accusing them of agreeing to “carve the United States into geographic exclusive service areas in which the other member plans could not compete” using BCBS names and trademarks.