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  Posted on 3/2/2010
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  Posted on 3/2/2010

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Consumer group sues Anthem for restricting coverage

Posted on Mar 02, 2010

California's largest for-profit health insurance provider, Anthem Blue Cross, is being sued for violating California law by closing certain health insurance policies to new members while offering remaining members alternative plans with fewer benefits and higher rates.

The class-action lawsuit is being brought by a Santa Monica-based Consumer Watchdog, who claims that the company is violating California's Health and Safety Code. In the state, when an insurance provider closes a policy, they must provide a comparable alternative. When a block of insurance is closed, it drives up premiums for remaining members, who now must divide costs among a smaller number of people. 

The closing of certain policies to new members came about the same time that the company warned consumers that their rates would rise as much as 39%.



































 

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