Consumer group sues insurer over policy changes

Consumer Watchdog sues Anthem Blue Cross alleging diminished coverage in policy changes

SHAYA TAYEFE MOHAJER
AP News

Mar 02, 2010 04:43 EST

Mary Feller's family of three spends nearly $25,000 a year on health insurance premiums, which is more than they pay on their home's mortgage in California's Marin County.

"I think for the first time we're really scared that we're going to be without health insurance," she said. Feller's especially worried for her 26-year-old daughter, a cancer survivor whose premium has tripled in four years.

That's why she decided to become a plaintiff in a lawsuit against California's largest for-profit health insurer on behalf of policyholders who were allegedly pushed to take coverage with fewer benefits and higher deductibles.

In a lawsuit filed in Ventura Superior Court on Monday, Anthem Blue Cross is accused of violating a California law requiring health insurers to offer new, comparable coverage or minimize premium increases when they close a policy.

According to the lawsuit, plaintiffs Mary Feller and Randy Freed received similar form letters from the Woodland Hills-based insurer, stating their policies were closed and they could "switch to any Anthem Blue Cross individual health plan with no underwriting required."

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