Calif. Consumer Group Sues Anthem Blue Cross For Obamacare Automatic Renewals For Stripped-Down Plans
On the first day of open enrollment, Consumer Watchdog is charging in a class-action lawsuit that the insurance giant is pushing exiting members into plans that no longer cover out-of-network costs.
Los Angeles Times:
Anthem Is Cutting Out-Of-Network Health Coverage In A 'Bait And Switch,' Lawsuit Says
On the first day of Obamacare open enrollment, a consumer group sued Anthem Blue Cross for attempting to automatically renew policies that no longer cover out-of-network costs for hundreds of thousands of Californians. A lawyer for Consumer Watchdog said Tuesday that Anthem was “railroading existing members into bare-bones plans” without properly disclosing the change to them in recent renewal letters. (Petersen, 11/1)
San Jose Mercury News:
Consumer Group Sues Anthem Over "Bait And Switch'' Tactics For 2017 Health Plans
Calling it a classic “bait and switch,” a California consumer group on Tuesday lashed out at Anthem Blue Cross of California, claiming it failed to adequately warn customers they were being shifted in 2017 to brand-new, stripped-down plans. Santa Monica-based Consumer Watchdog announced it has filed a class action lawsuit against the health insurance giant after Anthem moved hundreds of thousands of its Preferred Provider Organization customers to Exclusive Provider Organization plans for 2017 — all the while calling the new plans “similar coverage.” PPO plans cover a portion of out-of-network costs, while EPO plans cover none of them. (Seipel, 11/1)