Insurance

More Bad News For Anthem

March 3, 2010  ·  Consumer Watchdog

<p> 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." </p>

Insurance Rate Hikes Fan Political Firestorm

March 3, 2010  ·  Consumer Watchdog

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

March 3, 2010  ·  Consumer Watchdog

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

March 2, 2010  ·  Consumer Watchdog

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.

FDIC Chairman Sheila Bair Committed To Independent Consumer Agency

March 2, 2010  ·  Consumer Watchdog

One of the nation's top banking regulators reiterated her support for an independent agency to protect borrowers from predatory lenders, putting her at odds with her fellow regulators and the industry she oversees. "Granting the Fed consumer protection authority would create a lapdog for Wall Street, not the watchdog consumers need," said Carmen Balber, Washington Director for Consumer Watchdog, in a statement. "We can't cross our fingers and hope the regulators whose failures caused the crisis in consumer lending will do a better job for the public next time around."

Santa Venetia Woman Joins Suit Against Anthem Blue Cross

March 2, 2010  ·  Consumer Watchdog

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.

The day when Daddy Warbucks couldn’t afford health insurance

March 2, 2010  ·  Consumer Watchdog

<p> A few sentences in <a href="http://www.consumerwatchdog.org/patients/articles/?storyId=33041">a Wall Street Journal story</a> Tuesday, on Blue Cross insurance increases, made my eyes pop. If you take the words at face value, we're heading for a future in which a few very rich sick people will pay $10,000 a month for health insurance and the rest of us can just beg for bandages on the street. </p>

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

March 2, 2010  ·  Consumer Watchdog

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 Over Rate Increases

March 2, 2010  ·  Consumer Watchdog

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

March 2, 2010  ·  Consumer Watchdog

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

March 2, 2010  ·  Consumer Watchdog

<b>Anthem Blue Cross accused of illegal premium hikes - Customers say they are forced into inferior plans</b> <br/><br/> 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

March 2, 2010  ·  Consumer Watchdog

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.