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A former podcast from Lockton’s ERISA Compliance Consulting team 

You’ve reached the home of ERISA is a Friend of Mine, an informal and informational podcast series that Lockton’s ERISA Compliance Consulting team produced from 2019 to 2022. Scroll down to view and listen to any of the podcast episodes. NOTE: These podcasts have not been updated since their publication dates.

For the latest information and content on ERISA and other employee benefits issues, click below to visit Lockton’s Compliance Consulting webpage, and to learn more about our services and Lockton People Solutions.

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  2. Should you be in class? Employers, employees and the nearly $3 billion Blue Cross Blue Shield class-action settlement

Should you be in class? Employers, employees and the nearly $3 billion Blue Cross Blue Shield class-action settlement

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.