Blue Cross Blue Shield Antitrust Litigation
This antitrust litigation alleged that over 30 Blue Cross Blue Shield health insurance companies have entered into agreements not to compete with each other for customers, both by allocating the markets in which they sell health insurance and capping the amount of unbranded health insurance they offer. Hausfeld represented a class of subscribers of health insurance alleging that these rules have artificially inflated premiums and decreased consumer choice in the market for health insurance. Chair Emeritus and founder of the firm, Michael Hausfeld, was appointed co-lead counsel, and Hausfeld partner Megan Jones was appointed to the Plaintiffs’ Steering Committee. As such, since their appointment, Hausfeld personnel was instrumental in designing and executing the strategy of this case. Art Bailey, another Hausfeld partner, was appointed to the Discovery Committee.
Action
Hausfeld filed this lawsuit in 2013 and sought damages on behalf of a class of tens of millions of subscribers, along with injunctive relief that would increase competition in the market for health insurance.
In 2014, Judge Proctor denied the Defendant Blues motions to dismiss, and the case proceeded into discovery against more than thirty defendants. In October 2015, the Court held that in order to streamline the action as a whole, the case against Blue Cross Blue Shield of Alabama and Blue Cross Blue Shield Association would proceed on an accelerated basis. Discovery for the accelerated actions closed in December 2017.
In 2017, Plaintiffs moved for a summary judgment finding that agreements between the Blues to allocate territories should be accorded per se treatment under the Sherman Act. Plaintiffs also moved for a finding that Blue Cross Blue Shield Association rules that limit unbranded competition between the Blues should similarly be treated under a per se standard. These motions were based on extensive documentary evidence in which the Blues readily admit the anticompetitive nature of their rules. On April 5, 2018, the Court granted Plaintiffs' motion and found that the challenged restraints are subject to per se review under the Sherman Act.
On November 30, 2020, the Court granted preliminary approval to the proposed settlement agreement resolving the claims of Blue Cross Blue Shield subscribers for $2.67 billion. In addition to monetary relief, the settlement proposes systemic injunctive relief that will change the landscape for competition in healthcare.
In August 2022, Judge Proctor gave final approval to the $2.67 billion settlement on behalf of employers and individuals with private health insurance from Blue Cross Blue Shield entities, in compensation for damages caused by the Blues’ agreements not to compete with each other. The final $2.67 billion settlement is the largest antitrust settlement in a case where the government had not itself prosecuted, investigated, or been part of the case at all.
On October 25, 2023, a three-judge panel from the 11th Circuit Court of Appeals unanimously affirmed final approval of the $2.67 billion Blue Cross Blue Shield settlement that was approved by the trial court in August 2022.
Outcome
In 2023, following the 11th Circuit Court of Appeals’ approval, two petitions were filed with the Supreme Court asking the justices to review the lower court’s ruling that affirmed approval of the settlement. In June 2024, the U.S. Supreme Court declined to review Home Depot's challenge of a $2.67 billion settlement in an antitrust litigation targeting Blue Cross Blue Shield, as well as a separate challenge of the attorney fees awarded for the deal.
These rulings by the Supreme Court signify the last step in court approval for the settlement. Alongside a monetary award of $2.67 billion, among the largest ever in a private antitrust case without government involvement, the settlement incorporates substantial injunctive relief aimed at enhancing competition within the health insurance market.
After ten years, a hundred million documents reviewed, and over one hundred depositions taken, Hausfeld is proud to have helped to obtain this antitrust relief in healthcare for millions of Americans. We take pride in our pivotal role in fostering genuine competition in the health insurance market, benefiting all Americans. Our aim was to enhance competition across various healthcare services, from chemotherapy to casts, for subscribers nationwide. Hausfeld attorneys who worked on this case are Michael D. Hausfeld, Megan E. Jones, Swathi Bojedla, Michael P. Lehmann, Scott Martin, and Arthur Bailey Jr. The case is In re Blue Cross Blue Shield Antitrust Litigation, Case No. 13-cv-20000-RDP (N.D. Ala.).
