Kennewick School District Distributed Employee Payments
Eligible staff members have received one-time $600 deposits into health care trusts.
Updated on Oct. 14, 2026 in Financial Aid
Live Poll
Should local school districts prioritize employee benefits when receiving unexpected legal settlement funds?
The Kennewick School District has begun distributing $600 payments to approximately 2,500 eligible employees. These funds are derived from a portion of a $2.67 billion class-action antitrust settlement involving the Blue Cross Blue Shield Association.
Why it matters
The disbursements serve as a financial boost for staff by funding Voluntary Employees' Beneficiary Association (VEBA) trusts, which are used to cover post-retirement health care expenses.
The Kennewick School District received a total of $1.6 million from the settlement, with $600 allocated to each of the 2,500 eligible employees. These funds are specifically designated for VEBA trusts.
The players
Kennewick School District
This local educational agency serves students and staff in the Kennewick area.
Blue Cross Blue Shield Association
This national federation of independent health insurance companies was the defendant in the class-action antitrust lawsuit.
The details
The district is distributing the settlement money to current staff members as a one-time contribution. The payout stems from litigation against the Blue Cross Blue Shield Association, which denied any wrongdoing despite agreeing to the multibillion-dollar settlement.
Timeline
2008-2020: Enrollment period for group-insured accounts in settlement.
2015-2020: Enrollment period for self-funded accounts in settlement.
May 11: Distribution of $1.9 billion settlement funds began.
Next 30 days: Kennewick district distributes payments to employees.
Culture Shift
This allocation follows the legal precedent established by the $2.67 billion Blue Cross Blue Shield Association antitrust settlement. The distribution reflects a broader trend of large-scale class-action settlements providing targeted financial support to eligible participants through established benefit trusts.
Eligible employees in the Kennewick School District will see the $600 contribution appear in their VEBA trust accounts within the coming month. Other area employers, such as the Richland and Pasco school districts, were not included in this settlement distribution.
The takeaway
These funds provide a specific financial benefit aimed at offsetting long-term health care costs for eligible staff. Employees should monitor their VEBA account statements over the next 30 days to confirm the receipt of the one-time payment.
Further reading
For more information on navigating benefits, visit the Financial Aid section.
More information
Check the Settlement claim status lookup tool to review details regarding the claims process.
Source note: This article includes information reported by Tri-City Herald.
Live Poll
Should local school districts prioritize employee benefits when receiving unexpected legal settlement funds?
