Anthem Blue Cross Sued Over Changes

[Kadie]

Anthem Blue Cross Sued Over Changes
Insurer Allegedly Manipulated Policies
POSTED: 2:54 pm PST March 1, 2010
UPDATED: 3:17 pm PST March 1, 2010


LOS ANGELES -- A group has sued Anthem Blue Cross for allegedly manipulating policies and forcing patients into higher deductibles and fewer benefits.

Consumer Watchdog filed the lawsuit Monday in Ventura County Superior Court. It accuses California's largest for-profit health insurer of violating a state law requiring health insurers to offer new, comparable coverage or minimize premium increases when they close a policy.

The lawsuit was filed on behalf of Anthem Blue Cross policyholders who say they were forced into lesser policies with rising rates.

http://www.kcra.com/health/22709002/detail.html



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Consumer group sues Anthem Blue Cross over policy change

Consumer Watchdog says Anthem violated California's health and safety code when it closed policies to newcomers and offered remaining customers alternative plans with fewer benefits at higher rates.

By Duke Helfand
March 1, 2010 | 2:03 p.m.

A consumer group sued Anthem Blue Cross on Monday, accusing California's largest for-profit health insurer of violating state law by closing certain policies to new members while illegally offering remaining customers alternative plans with fewer benefits at higher rates.

Santa Monica-based Consumer Watchdog says in its class-action lawsuit that Anthem began closing "blocks of health insurance business" last fall, a few months before it informed policyholders who stayed put that their rates would rise as much as 39%.

Anthem's proposed rate hikes, set to take effect May 1, have caused a national uproar, prompting criticism by consumers, regulators and lawmakers, and triggering state and federal investigations. Anthem's president and the chief executive of its parent company, WellPoint Inc., were called last week to testify in Sacramento and Washington.

snip...
The lawsuit says that Anthem violated the state's health and safety code when it closed the policies to newcomers and did not offer existing members comparable alternatives. Plaintiff Randy Freed, 55, says in the lawsuit that he and his wife tried to obtain a similar plan but found that they could only get one with higher deductible and fewer benefits.


http://www.latimes.com/business/la-fi-anthem2-2010mar02,0,4587397.story?track=rss

[upi402]

1. Santa Monica-based Consumer Watchdog

:patriot:

[subterranean]

2. This is one tactic they use to weed out unhealthy (unprofitable) customers.

They offer to move healthier customers to different policies, and jack up premiums to drive out customers with health issues, who then become uninsurable because of pre-existing conditions.

I hope this group wins the lawsuit.

[chill_wind]

3. Fingers crossed. K & R. n/t