Vol. XVIII, Issue 26

July 29, 2021

Please Help Promote the Health Check

The deadline for the Health Check and Blueprint for Wellness® is fast approaching and we could use your help to remind participants that they have until August 31 to complete both assessments.

We would greatly appreciate it if you could share the following social media posts from your accounts to promote the Health Check online survey. The posts demonstrate the steps HealthFlex participants need to take once they have logged into Virgin Pulse®.

For additional resources like e-mail attachments to promote completion of the Health Check and Blueprint for Wellness, you can go to the Extranet. After you log in, click "HealthFlex Tools & Resources."

Update: Blue Cross Blue Shield Association Lawsuit

In the April 22 and April 28, 2021 editions of HealthFlex Express, we provided information regarding the proposed settlement of a class action lawsuit alleging antitrust violations by Blue Cross Blue Shield Association (BCBSA), which is the national association of 35 independent, locally-operated Blue Cross Blue Shield companies. Blue Cross Blue Shield of Illinois (BCBSIL), one of HealthFlex's third party administrators, is a member of the BCBSA.

Wespath, on behalf of HealthFlex, has joined a group of other denominational church plans and labor union-sponsored plans to opt out of the proposed settlement and file an objection to certain aspects of the settlement's injunctive (non-monetary) relief. Importantly, this does not impact HealthFlex participants' rights to file a claim to share in the settlement proceeds. The information that we previously shared with participants regarding their rights to file a claim (which was described in the April 28 edition of HealthFlex Express) remains accurate.

In addition to the monetary relief provided by the proposed settlement, the settlement includes injunctive relief that requires the BCBSA and its member companies to stop engaging in certain anti-competitive behavior in the future. One aspect of this injunctive relief is referred to as the "Second Blue Bid" provision. Currently, BCBSA companies are prohibited from submitting a bid to provide services to a plan that receives administrative services from another BCBSA company. The class action lawsuit alleges that this restriction significantly reduces competition in the health plan administrative services market, resulting in higher fees paid by plans and their participants. The Second Blue Bid provision would require BCBSA to start allowing certain large health plans to receive a second, competing bid for administrative services from another BCBSA company, thereby making the bidding process more competitive and potentially reducing fees.

The Second Blue Bid provision generally covers plans with more than 5,000 participants that are geographically dispersed. However, multiple employer church plans and plans sponsored by labor unions were excluded from the Second Blue Bid provision even if they have more than 5,000 geographically dispersed participants. Wespath, along with the group of other denominational church plans mentioned above, has filed an objection to this inequitable treatment of church plans with the court that is handling the lawsuit. We believe that this action is necessary to protect church plans' interests generally and to guard the interests of the HealthFlex Plan and its participants and plan sponsors.

As part of this approach, Wespath, on behalf of HealthFlex, is also pursuing a higher level of monetary relief than is offered by the proposed settlement. Any monetary relief we obtain will be contributed to HealthFlex's assets for the benefits of HealthFlex plan sponsors and participants.

Importantly, we do not expect that this approach will affect our relationship with BCBSIL or impact the service that BCBSIL provides to HealthFlex and participants.

We will provide more information to HealthFlex plan sponsors, as appropriate, as this lawsuit and related activity progresses. Class action settlements and related activity generally progress slowly (in fact, this class action lawsuit has been pending for over eight years), so it is likely this may not be resolved in the near term. Given that the information previously shared with participants regarding their right to file a claim in this lawsuit remains accurate, we are not planning additional communications to participants at this time.


Copyright © Wespath Benefits and Investments,
a general agency of The United Methodist Church

Share your suggestions and comments about HealthFlex Express