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If employee benefits compliance doesn't sound fun to you, then you haven't listened to ERISA is a friend of minea podcast hosted by the Compliance Services professionals from Lockton. Join hosts Edward Fensholt, J.D., director of Compliance Services, and Scott Behrens, J.D., director of Government Relations, to learn the intricacies of the Employee Retirement Income Security Act (ERISA) and other employee benefits laws, one hilarious topic at a time. 

 

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May 24, 2021

There's a near $3 billion pot o' gold up for grabs for employers (and their employees) who purchased Blue Cross Blue Shield (BCBS) insurance policies or used BCBS to administer claims under self-funded plans between 2008 and 2020. But before you begin making retirement plans, understand that nobody – except maybe the class-action lawyers – is going to get rich on the backs of the settlement.

The expected claimants number in the tens of thousands and any group plan's share of the settlement pie is divvied up between the employer and employees under one of a pair of formulas described in the settlement agreement. Ed and Scott welcome "BCBS point man" Mark Holloway to explain:

 

  • How does the BCBS association work, and where did this pot of money come from?
  • Who can make a claim for a piece of the pie (and why is Scott frozen out)?
  • In making a claim, should employers use the "default" or "alternative" method (hint: How much work do you want to do?)
  • Why did Ed disappear to the Colorado mountains…and why might 007 want to know?
  • What market reforms did BCBS agree to make as part of the settlement, and how might they benefit plan sponsors that buy group insurance from BCBS?

For more information about the BCBS class action settlement, and to view the settlement agreement, FAQs and model claim forms, see www.bcbssettlement.com.

For model employee communications about the settlement, ask your Lockton account service team.