 (Image: umjanedoan under CC 3.0) |
The proposed health insurance rate increases by Anthem Blue Cross in California have been extremely controversial nationwide. Now, a consumer protection group has filed a lawsuit against the health insurer.
The group, known as Consumer Watchdog, claims that Anthem and its parent company WellPoint violated state law by leaving members with pre-existing conditions in closed policies–while preventing new members from joining certain health insurance plans. When Anthem then decided to jack up premiums, those people had nowhere to turn.
There is little competition, because people with pre-existing conditions can’t shop around for individual health insurance from other providers. Instead, they must either settle for inferior coverage and higher deductibles or pay more for the same coverage. Anthem Blue Cross’ actions may be considered an anticompetitive practice due to a provision in the California health and safety code, which requires health insurance companies to either expand the risk pool or offer a comparable alternative to closed plans.
Tags: Anthem Blue Cross, california health insurance, health insurance, healthcare reform, individual health insurance, pre-existing conditions, Wellpoint
