Anthem Blue Cross Settles Lawsuit Alleging Policy Manipulation

Anthem Blue Cross has agreed to settle a lawsuit brought by Santa Monica-based Consumer Watchdog that accused the payor of manipulating policies and forcing California patients to take higher deductible policies with fewer benefits, according to a Bloomberg Businessweek report.

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The case was brought by Consumer Watchdog as well as several law firms in 2010. The lawsuit alleged that policyholders in closed policies were illegally being charged significantly more than policyholders in plans that were still accepting members. The health insurer closed policies for approximately 122,000 policyholders in 2009, according to the report.

Policyholders who have stayed in PPO Share 500, PPO Share 1000, PPO Share 1500 or PPO Share 2500 plans are able to change to new health plans regardless of health history and have their rates capped in the future, according to an Anthem statement.

The settlement admitted no wrongdoing on behalf of Anthem, according to the report. The agreement has been initially approved in a California Supreme Court and will be finalized at an Aug. 26 hearing.  

Read the Bloomberg Businessweek report on Anthem Blue Cross.

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