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

Morgan Haefner -

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.

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