$2.67 Billion doesn’t even shake out to a payment for someone on one of these plans for more than 2/3 of the period covered by the settlement.

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[–] 20 points 4 months ago (5 children)

I'm so confused. Who is/isn't paying who?

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  • [–] 59 points 4 months ago (4 children)

    Blue cross settled with people they insured to pay for shady practices. The amount that (apparently) many of us were awarded was less than $5, so we - the insured - don't get paid.

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  • [–] 9 points 4 months ago (2 children)

    Does the money go somewhere else or do they just keep it?

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  • [–] 9 points 4 months ago (1 child)

    My guess would be the lawyers

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  • [–] 10 points 4 months ago

    The lawyers got $667 milllions of the $2.67 billion settlement. Another $100 million was spent on administration to who knows what. They're maiIing cheques so postage might be a significant amount as well.

    The average payout of the remaining $1.9 billion across 6 million recipients is $333, so someone will receive whatever larger amounts amounts to that average in consideration of almost everyone else who gets nothing.

    My guess is that it works similar to a bankruptcy, where the largest creditors are paid first, but with significant reductions, and of those reductions are used to pay the next most and so on.

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