Consumer Watchdog | Courts

Calif. Regulators Defend Dropped Insurance Deals

Wed, 10 Mar 2010 11:19:00 PST

LOS ANGELES, CA (AP) ― State insurance regulators on Wednesday defended their actions against health insurers after a report showed few consumers who complained that their coverage was canceled after they took ill actually benefited from state-negotiated settlements. The settlements may not have appealed to many consumers because they were "very stilted towards insurance companies," said Jerry Flanagan, a health advocate for Consumer Watchdog. Consumers weren't allowed to hire lawyers for arbitration, and had to prove all their past medical bills were "medically necessary, which is a hard legal standard to meet" without a lawyer's help. Additionally, the coverage that was offered through arbitration was usually a policy with a lower benefit than the wrongfully rescinded policy, said Flanagan.

Profiting From Collusion: Why Californians Can't Afford Health Insurance

Wed, 10 Mar 2010 10:33:00 PST

California's Consumer Watchdog group is suing Anthem Blue Cross after they raised health care insurance premiums 39 percent, but the company isn't budging. Meanwhile Goldman Sachs recommended buying health insurance company stock because competition is decreasing and prices are going up. The Center for Retirement Research at Boston College estimates that "the typical married couple at age 65 should expect to spend" a whopping $197,000 on uninsured medical expenses. Obama urges action on a watered-down health care bill, but the Republicans and conservative Democrats just say no and collect money from the private health care lobby. Will we continue to tolerate skyrocketing health care costs?

Lawsuits Over California Ballot Question to Be Heard Together

Mon, 08 Mar 2010 13:03:00 PST

A judge will hear testimony on three related cases surrounding ballot language for Proposition 17, which backers say will allow discounts for more drivers and opponents claim will create back-door rate increases. The latest is Attorney General Jerry Brown's attempt to change the official title and summary to say the measure "will allow insurance companies to increase cost of insurance to drivers who do not have a history of continuous insurance coverage," according to the lawsuit. Due to what Brown's office argued is its error, the language submitted by the attorney general to the California Secretary of State reads, "may allow insurance companies to increase cost of insurance to drivers who do not qualify for discount."

Anthem's Rate Hikes To Add To Burdens Of Jobless

Sat, 06 Mar 2010 14:28:00 PST

There have been demands for explanations from state and federal lawmakers as well as the White House. Documents of financial records have been subpoenaed. Last week, Consumer Watchdog filed a lawsuit in Ventura County Superior Court alleging the insurer doesn’t offer adequate alternatives when it closes a policy.

Thanks Blue Cross, you gave the public its reason to reform

Fri, 05 Mar 2010 03:50:00 PST

The President called for an up or down vote on health care reform, but I can say from my own experience this week working with Blue Cross patients, who are part of Consumer Watchdog’s lawsuit against he company, that the public has already cast its vote.

President Obama's best ally--Anthem Blue Cross

Wed, 03 Mar 2010 12:47:00 PST

President Obama's "get it done" speech on health reform Wednesday may have been a day late, but I hope it's not a dollar short, as the old saying goes. At least he has one tremendous ally in his call for action by Congress: Anthem Blue Cross, and the continuing outrage at its huge rate increases.

Consumer Group Sues Anthem Blue Cross Over Rate Hike

Wed, 03 Mar 2010 12:06:00 PST

A consumer group has filed a class-action lawsuit against Anthem Blue Cross of California, alleging the company's strategy in deploying an average 25% rate increase for individual plan customers violates state law. The lawsuit was filed by Consumer Watchdog on behalf of two Anthem policyholders who are covered under a program the insurer closed to new enrollees on Sept. 25, 2009. This triggers a "death spiral" as rate increases fall to "those remaining in the closed book of business until they can no longer afford coverage," the lawsuit stated.

More Bad News For Anthem

Tue, 02 Mar 2010 17:43:00 PST

The company used controversial rate hikes, as high as 39 percent, to force older and sicker customers into high-deductible plans with fewer benefits so it could save money, Santa Monica-based Consumer Watchdog alleged in the complaint. The lawsuit seeks to end that tactic of "closing" an insurance product and raising rates to members while offering them cheaper plans, which plaintiffs say is known in the industry as the "death spiral."

Insurance Rate Hikes Fan Political Firestorm

Tue, 02 Mar 2010 16:43:28 PST

On Monday, Consumer Watchdog filed a lawsuit seeking class-action status against Anthem Blue Cross, alleging that the insurer is forcing subscribers into a coverage "death spiral." The suit, filed in Ventura Superior Court, accuses Blue Cross of hiking premiums to force subscribers from benefit-rich policies to less expensive coverage with fewer benefits and higher deductibles. The scrutiny has been welcomed by many, including consumer health care advocacy groups.

Marin Family Sues Anthem Blue Cross

Tue, 02 Mar 2010 16:35:55 PST

The Santa Monica-based advocacy group Consumer Watchdog brought the suit, saying Anthem violated a 1993 state law that requires health insurance companies to offer comparable coverage or minimal premium hikes if they cancel a policy. "Today's lawsuit is just the beginning of what is going to have to be a much more profound change in the state of California when it comes to healthcare," said Harvey Rosenfield, Consumer Watchdog's founder.

Consumer Group Sues Calif. Health Insurer

Tue, 02 Mar 2010 12:13:00 PST

SANTA MONICA, Calif. (KABC) -- A consumer watchdog group filed a lawsuit Monday against California's largest for-profit health insurer on behalf of policyholders, claiming they were pushed to take coverage with fewer benefits and higher deductibles. "Anthem Blue Cross has been in the news a lot because Anthem Blue Cross is very good at gouging people," said Jerry Flanagan, a health advocate for Consumer Watchdog. "They are the market leader, not only the largest insurance carrier, but they are the best at charging people more for less coverage." Consumer Watchdog says it's called a "death spiral" because rates inevitably increased until policyholders could no longer afford coverage. They say that's against California law.

Santa Venetia Woman Joins Suit Against Anthem Blue Cross

Tue, 02 Mar 2010 11:59:00 PST

The lawsuit seeks class action status and is being brought by Consumer Watchdog, a Santa Monica-based consumer advocacy group, on behalf of Feller and Freed. When the practice was outlawed in 1993, legislative analysts called it a "death spiral" because rates inevitably increased until policyholders could no longer afford coverage. As the coverage pool shrank over time, rates went up. "It's a very profitable practice, and what we know is the insurance industry is very focused on short-term returns," said Jerry Flanagan, a health advocate for Consumer Watchdog.

Consumer Group, Burlingame Attorney Sue Anthem Blue Cross Over Rate Hikes

Tue, 02 Mar 2010 11:39:00 PST

OAKLAND — A consumer group has sued Anthem Blue Cross for allegedly using its widely publicized rate hikes to attempt to force customers into lower benefit and higher deductible plans, a tactic the group calls a "death spiral." Many of the individual policyholders who recently learned their premiums would jump by as much as 39 percent were informed several months ago that Anthem Blue Cross was closing their plan to new customers, The firm then offered them plans with greatly reduced benefits, the class-action lawsuit filed by Consumer Watchdog says. "These customers are then forced to accept greatly inferior coverage or to drop it altogether," said Harvey Rosenfield, founder of Consumer Watchdog.

Anthem Blue Cross Sued for Hiking Premiums In Order To Push Policyholders into Bare Bones Coverage

Tue, 02 Mar 2010 10:54:47 PST

Santa Monica, CA - Anthem Blue Cross, the California subsidiary of the nation’s largest health insurer, WellPoint Inc., has used enormous rate hikes to force patients into lower-benefit and higher-deductible health coverage in violation of state law, according to a class action lawsuit filed today by Blue Cross policyholders and consumer advocates.

Can't pay for your health insurance?

Tue, 02 Mar 2010 10:45:00 PST

Veteran political cartoonist Clay Bennett of Chattanooga has the solution...

Anthem Blue Cross Sued Over Rate Increases

Tue, 02 Mar 2010 09:21:04 PST

A consumer group filed a lawsuit Monday against Anthem Blue Cross, accusing the insurer of raising rates to force members into policies with higher deductibles and lower benefits. Consumer Watchdog accuses Anthem of violating state law by failing to offer policyholders comparable coverage and minimize rate hikes after the company directs customers to alternative plans when closing out existing plans.

WellPoint CEO Takes On Critics Of Rate Hikes

Mon, 01 Mar 2010 22:39:17 PST

In California, in addition to government scrutiny, WellPoint faces a plaintiff suit�filed Monday in state court by the advocacy group Consumer Watchdog�that alleges that when WellPoint raised rates as it was seeking to wind down certain health plans it didn't provide mandated consumer protections, WellPoint said it hadn't yet seen the suit.

Consumer Group Sues California Health Insurer

Mon, 01 Mar 2010 22:28:36 PST

Anthem Blue Cross accused of illegal premium hikes - Customers say they are forced into inferior plans

LOS ANGELES, March 1 (Reuters) - Consumer advocates filed a class-action suit against Anthem Blue Cross on Monday, accusing California's largest for-profit health insurer of illegally using drastic rate hikes to force customers into inferior health plans.

Consumer Group Sues Insurer Over Policy Changes

Mon, 01 Mar 2010 22:20:00 PST

LOS ANGELES, CA -- A consumer watchdog group filed a lawsuit Monday against California's largest for-profit health insurer on behalf of policyholders, claiming they were pushed to take coverage with fewer benefits and higher deductibles.

Consumer Group Sues Anthem Blue Cross Over Policy Change

Mon, 01 Mar 2010 14:42:00 PST

Consumer Watchdog says Anthem violated the state's health and safety code when it closed policies to newcomers and offered remaining customers alternative plans with fewer benefits at higher rates.

Santa Monica-based Consumer Watchdog says in its class-action lawsuit that Anthem began closing "blocks of health insurance business" last fall, a few months before it informed policyholders who stayed put that their rates would rise as much as 39%.

Local Consumer Group Files Suit Against Anthem

Mon, 01 Mar 2010 09:52:00 PST

Insurer accused of manipulating policies, blocking access to care

A Santa Monica-based consumer advocacy organization filed a lawsuit Monday on behalf of enrollees of Anthem Blue Cross of California in Ventura County Superior Court, accusing the insurer of violating state law.

Arguing Over The Arguments

Fri, 26 Feb 2010 11:03:00 PST

The argument is over the arguments submitted against Proposition 17, the Mercury Insurance-backed measure that supporters say would allow auto insurers to extend discounts for maintaining continuous coverage to motorists who switch carriers. The opponents, who say the change would result in rate hikes for motorists who experienced a lapse in coverage, countered that Mercury Insurance is the one lying and attempting to mislead the public with its attempt to shut them up.

Backers of Auto-Insurance Measure Sue Over Ballot Pamphlet Language

Thu, 25 Feb 2010 14:20:00 PST

More than $3.51 million of Cal-FAIR’s $3.58 million campaign war chest came from insurance giant Mercury General Corp. Consumer Watchdog founder Harvey Rosenfield, one of the ballot-pamphlet argument co-authors named in the suit, said he looks forward to seeing Mercury in court. “For months, Mercury has been lying to the public, to state officials and to the news media about its June ballot initiative,” he said. “Indeed, for more than 10 years, the Department of Insurance and the courts have repeatedly concluded that Mercury’s proposal would create a new rating factor — the consideration of prior insurance history — that is currently illegal.” “The fact is that today, under current law, if you stop driving you won’t pay more when you restart your insurance coverage,” Rosenfield continued. “If Mercury’s Prop. 17 passes, insurance companies will be allowed to charge a lot more to good drivers who didn’t need insurance when they weren’t driving, or who missed a single payment, or who chose to fore-go coverage because of the economy or illness.”

Lawsuit Targets Anthem Denial Policy

Tue, 23 Feb 2010 14:36:00 PST

Anthem Blue Cross refused to pay for one of its California members to get a liver transplant at an Indiana University hospital to save money. Ephram Nehme's case is "Exhibit A" of another problem: insurers refusing to pay for or denying care that treating physicians order, Jerry Flanagan, healthcare director for the Consumer Watchdog advocacy organization, said at a news conference outside the courthouse. "Denials of life-saving, medically necessary care is the M.O. of an industry that puts profits before patients and yet another example of why Americans need a public option to the private insurance market," Flanagan said.

Why shouldn't Obama throw innocent patients under the bus? Ask Steven Olsen

Tue, 23 Feb 2010 06:38:00 PST

As pressure builds toward Thursday's "bipartisan" presidential summit on health care reform, some Capitol Hill staffers have reported receiving calls from the White House claiming the President is ready to give up the legal rights of medical malpractice victims for GOP support.

What's wrong with the trade-off? LA's local NPR talk radio host, Larry Mantle of KPCC's Air Talk, asked me yesterday in a midst of a debate about Obama's new health care reform proposal, which appropriately did not mention any changes to medical malpractice accountability. So I told Steven Olsen's story.

Yesterday happened to be the 20th birthday for Steven Olsen, whose tragic story at the age of two year deeply touched me and every one who ever heard it. Steven and his terrific parents, Kathy and Scott, will be at the White House next Monday to stop the President from using the remedies of innocent patients as a bargaining chip to get Republican votes. If President Obama personally spends a few minutes with Steven, it's hard to imagine how his conscience will let him sell out the rights of injured patients for Republican votes.