A California-based consumer group filed a lawsuit against Anthem Blue Cross alleging the payer tried to automatically renew hundreds of thousands of policyholders' plans without informing them out-of-network coverage would cease, reports Los Angeles Times.
The suit, filed in Los Angeles County Superior Court, claims the insurer was "railroading existing members into bare-bones plans" and inadequately notifying affected Californians about the out-of-network change in renewal communications, a Consumer Watchdog lawyer said, according to the report. Consumer Watchdog is a nonprofit representing taxpayers and consumers.
The consumer group's lawsuit said Anthem could have properly notified the preferred provider organization policyholders by sending them a discontinuation notice regarding their out-of-network coverage. Rather, Consumer Watchdog claimed Anthem used "bait-and-switch" tactics by sending automatic renewal notices if the policyholder did not switch plans by Dec. 15.
In addition to a change in out-of-network coverage, the plans have large premium increases.
Anthem spokesperson Darrel Ng told the Los Angeles Times the payer issued the plan changes "to mitigate rate increases and keep monthly premiums affordable," and that Anthem said the allegations are "without merit."
Consumer Watchdog is asking a judge to make Anthem renew the PPO for 2017 coverage and pay monetary damages for affected policyholders, according to the report.
More articles about payer issues:
Cigna's Q3 profit dips 16.6%
Maryland co-op needs acquisition approval before selling on ACA marketplace
Minnesota ACA exchange suffers IT mishaps, possible robot callers