Consumer Watchdog | Courts

3 On Your Side: DIRECTV Complaints

Thu, 12 Aug 2010 10:37:00 PDT

The nation's largest satellite TV service is getting some static. Consumers have now logged more than 40,000 complaints against DIRECTV on the Better Business Bureau's website. DIRECTV offers promotions like five months free or $29.99 a month. But some customers complain they're then surprised when charged extra fees for leasing equipment, special features and programming packages. Todd Foreman of the group Consumer Watchdog says to get out of DIRECTV's standard two year contract is expensive saying, "DIRECTV is charging up to $480 dollars for a cancellation fee."

Consumer Complaints, Lawsuits Target DIRECTV

Tue, 10 Aug 2010 09:46:00 PDT

Last year, Consumer Watchdog, a consumer advocacy group based in Southern California, filed a class action lawsuit against DIRECTV over its cancellation policies. Consumer Watchdog attorney Todd Foreman said the company can charge customers up to $480 to get out of their contracts.

Prior Approval for Health Policies Advances in California

Wed, 24 Mar 2010 11:20:00 PDT

SACRAMENTO, Calif. -- Health insurance plans in California would have to submit their rates for prior approval under legislation advanced by the Assembly Health Committee. Consumer Watchdog welcomed the bill and provisions that would allow consumers to intervene in the approval process. "Now that Congress has mandated that every American must show proof of owning a health insurance policy or face tax fines, California must ensure that the prices that insurers charge for coverage are fair," testified Jerry Flanagan, the advocacy group's health care policy director.

Insurance Ballot Fight Warms Up In Court

Sat, 13 Mar 2010 12:27:00 PST

Lawsuits ensued over just how that impact would be described in the voter pamphlets, landing all three parties in court: Attoney General Jerry Brown, Harvey Rosenfield and the backers of Proposition 17. Brown, for instance, insisted on language saying the initiative "will allow insurance companies to increase cost of insurance to drivers who do not have a history of continuous insurance coverage." Backers of Proposition 17 wanted that language stricken, but the judge disagreed.

Judges Review Language Of State Ballot Measures

Sat, 13 Mar 2010 10:32:00 PST

A teachers union's effort to change wording in Prop. 14, which would allow open primaries, was largely rejected. Measures on car insurance and public financing got only minimal adjustments.

"All Proposition 17 does is allow people to take it with them when they move to a new insurance company and get the lower rate," argued Richard Martland, an attorney for the supporters. But Consumer Watchdog founder Harvey Rosenfield said the measure is a thinly disguised attempt by Mercury to be allowed to charge higher rates for those it doesn't want to insure. Rosenfield's attorney, Fredric Woocher, said the proposition is being misleadingly cast as an opportunity for drivers to retain their loyalty discounts even if they switch insurers. "You can't take it with you," Woocher said. "You are taking away the one thing that makes persistency persistent. It would be like taking a good student discount and extending it to people who fail."

Judge Rules On Proposition 17 Ballot Measure

Fri, 12 Mar 2010 11:27:00 PST

Consumer Watchdog argues Prop 17 also allows insurance companies to charge a severe penalty to customers who do not have a history of coverage, therefore, the voter pamphlet should say the initiative will raise rates. “It allows insurance companies to surcharge people just because they didn’t have previous insurance, maybe they didn’t even have a car, or they were in the military serving stateside, or they missed a single payment on their insurance,” said Harvey Rosenfield with Consumer Watchdog.

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.