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Policy & Advocacy

Supreme Court Declines to Hear Home Depot Appeal of BCBS Antitrust Settlement

Employers should review their organization’s claim with regards to compensation from the Blue Cross Blue Shield settlement fund. Employers may be entitled to a portion of the $2.67 billion settlement.

July 08, 2024

Key Actions

  • Review your organization’s participation or claim with regards to compensation from the BCBS settlement fund.
  • Employers considering an RFP for medical coverage should be aware that, under the settlement, the inclusion of additional BCBS participating plan bids will be available as of September 24. Employers may wish to consider that timing in the RFP process.

The Supreme Court of the United States (SCOTUS) declined to hear a dispute between Home Depot and the Blue Cross Blue Shield Association (BCBSA) and participating plans (collectively “BCBS”) regarding a class action settlement that was agreed to among class litigants in 2020 and 2021.

Originally a group of employers and individuals initiated a class-action lawsuit against BCBSA and participating plans in 2012, accusing the organizations of various anti-competitive actions, including unlawfully dividing markets among its 36 independent member companies to avoid competition.

After eight years of litigation, a settlement was reached in 2020 in which BCBS agreed to pay $2.67 billion and make certain changes to its participation rules and practices. A significant portion of the settlement fund was allocated to compensate class members, which included both fully insured and self-funded employers who had facilitated health coverage through BCBS.

Home Depot, however, objected to the settlement and filed a new challenge in September 2022. The company argued primarily that the settlement terms went too far potentially limiting future challenges to possible anti-competitive behavior by BCBSA and participating plans.

The U.S. Court of Appeals for the Eleventh Circuit rejected Home Depot’s 2022 challenge, prompting the company to appeal the case to SCOTUS. The Supreme Court declined to hear Home Depot’s case, and thus the settlement remains in effect, concluding the legal challenge and allowing BCBS to distribute the settlement funds.

We provide this material for informational purposes only; it is not a substitute for legal advice.

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