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Wednesday, Nov 2 2016

Full Issue

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.

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 鈥渞ailroading existing members into bare-bones plans鈥 without properly disclosing the change to them in recent renewal letters. (Petersen, 11/1)

Calling it a classic 鈥渂ait and switch,鈥 a California consumer group on Tuesday lashed out at Anthem Blue Cross of California, claiming it failed to adequately warn聽customers they were being shifted in 2017 to聽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 鈥 all the while calling the new plans 鈥渟imilar coverage.鈥 PPO plans cover a portion of out-of-network costs, while EPO plans cover none of them. (Seipel, 11/1)

This is part of the Morning Briefing, a summary of health policy coverage from major news organizations. Sign up for an email subscription.
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