Blue Cross Blue Shield Class Action Settlement
Master Executive Council (MEC)
Legal Disclaimer
The following information is being provided as a courtesy to our members because enrollment in some of the Company-provided healthcare plans subject to specific provisions of the Collective Bargaining Agreement may have made you eligible for a class action settlement. However, AFA is neither a party to the class action nor has been involved in the settlement agreement discussions. If you have specific questions or concerns about the terms of the class action settlement, then you need to consult with the Claims Administrator or Co-Lead Counsel as described in the Blue Cross Blue Shield Settlement or with your own attorney.
Class Action Settlement is Legitimate
Many Flight Attendants have received notice via USPS or email about a class action settlement involving the Blue Cross Blue Shield (BCBS) companies, including Premera Blue Cross. For reasons unknown, the delivery of the notices has been all over the map in terms of timing, and many Flight Attendants have reported that they have not received any notice whatsoever. Regardless, these notices are legitimate, and you may be eligible for a settlement payment pursuant to this cause of action if you enrolled in the Company-funded traditional or high-deductible PPO healthcare plans administered by Premera Blue Cross during the eligibility period (see “Settlement Details” below).
Alaskasworld Notice Posted
AFA requested that management post a notice to employees on Alaskasworld (AW), and management agreed to do so. See AW “For your information: Blue Cross Blue Shield notices” (May 27, 2021) for the article (AAG SSO required).
Settlement Details
- Website: http://www.BCBSsettlement.com
- Alaska Airlines employees would potentially belong to the “self-funded employees” category under “self-funded accounts”
- Self-funded net settlement fund: 6.5% of the estimated $1.9 billion “net settlement fund” = ~$120 million.
- Self-funded eligibility period: September 1, 2015 – October 16, 2020
- Default payment option for employees is a portion of total administrative fees paid during the eligibility period: 18% for “single coverage” (employee only) and 25% for “family coverage (employee + spouse or employee + family), with the remainder going to the employer. In our opinion, this is a favorable calculation relative to the proportion of our contribution rate compared to the Company’s actual cost for healthcare.
- Opt-out or objection deadline is July 28, 2021
- You must submit a claim in order to be eligible to receive a payment.
- Claim deadline is November 5, 2021
- Minimum payment is $5
Minimum Payment
In our estimation, the minimum payment of $5 is likely to exclude any Alaska employees from receiving a payout under this settlement. However, there really is no way to know for certain. We are recommending that all eligible Flight Attendants who are interested in participating in the terms of the settlement should submit a claim by November 5, 2021.
Premera Blue Cross Third Party Administrative (TPA) Fees
This information is not necessary to know in order to submit a claim. However, some Flight Attendants have expressed an interest in potentially submitting for an alternative payment option instead of the default 18% for single coverage and 25% for family coverage. Some of those Flight Attendants have inquired about the third party administrative (TPA) fee paid to Premera Blue Cross by the Company for each enrolled employee on a monthly basis during the eligibility period.
Please refer to the emailed version of this communication for the TPA fees paid per employee (enrolled) per month (PEPM).
Questions?
- Website: www.BCBSsettlement.com
- Email: info@BCBSsettlement.com
- Call: (888) 681-1142
- Write to: Blue Cross Blue Shield Settlement c/o JND Legal Administration, PO Box 91390, Seattle, WA 98111
If you have questions specifically for AFA, contact your LEC president.
