Sovereign Health sues Health Net for $55M in unpaid services


San Clemente, Calif.-based Sovereign Health, a mental illness and drug addiction treatment provider, sued Los Angeles-based Health Net for $55 million in allegedly unpaid medical services, The Orange County Register reported.

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

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