Sovereign argues Health Net paid 36 percent of claims in 2015, and only 3 percent of claims in 2016, according to the complaint.
Health Net is currently being investigated by the California Department of Insurance regarding withheld payments to other addiction treatment centers, The Orange County Register reported. California Department of Managed Health Care is also reviewing complaints about the insurer from executives and owners of 120 treatment centers.
More articles about healthcare legal & regulatory issues:
Ex-CEO of defunct Long Beach substance abuse center indicted for $50M fraud scheme
Kaiser accuses ex-employee of embezzling $7M
19 recent lawsuits involving hospitals
At the Becker's 11th Annual IT + Revenue Cycle Conference: The Future of AI & Digital Health, taking place September 14–17 in Chicago, healthcare executives and digital leaders from across the country will come together to explore how AI, interoperability, cybersecurity, and revenue cycle innovation are transforming care delivery, strengthening financial performance, and driving the next era of digital health. Apply for complimentary registration now.