Santa Monica, CA: Anthem Blue Cross is facing a class action lawsuit over allegations that it is in violation of California state law because it is not offering policyholders comparable coverage and minimizing rate hikes once it has directed its clients to alternative plans.
Anthem is offering alternative plans because it is closing down specific insurance plans in the individual market. The suit also alleges that the insurance company has systematically increased the premiums patients must pay and pushed them into lower benefit coverage—often with high deductibles and dramatically scaled back coverage."
According to the lawsuit, "Blue Cross offers lower benefit coverage with higher deductibles and/or lesser benefits, often for increased premiums. Accordingly, enrollees receive lesser benefits than those to which they are statutorily entitled."
These circumstances represents particular hardship for older clients with pre-existing health conditions, as it will be very difficult or impossible for them to obtain similar or better coverage with a new insurer. They then find that they have to stay with Blue Cross and are forced to pay ever increasing premiums.
In early February, Anthem Blue Cross announced that as of March 1st, 2010, is would raise it health insurance rates by nearly 40 percent in California, affecting approximately 800,000 customers.
