Anthem Blue Cross Sued for Planned Policy Changes

A class action lawsuit filed in Los Angeles County Superior Court says Anthem Blue Cross’ plans to increase annual deductibles and make other changes in the middle of the policy year will breach its contracts with policyholders.

Anthem Blue Cross’ recent announcement that it would make key changes to policyholders’ plans effective May 1 has caused many subscribers to cry foul, saying the changes are unfair.

Plaintiff Eric Taub is one of them. Taub claims in the Anthem Blue Cross class action lawsuit that on January 1 he enrolled in Anthem’s “PPO Share 1500” plan, which said he must meet a $1,500 deductible each calendar year before benefits for covered medical expenses kick in. Just one month after his contract year started, however, Anthem notified Taub that starting May 1 it would increase in his annual deductible for medical care to $1,750. Taub was also informed by Anthem that it would increase his prescription drug deductible and his annual out-of-pocket maximum co-pay while raising his insurance premium 21.1 percent.

Anthem has announced similar midyear changes for other plans, including an increase in the deductible for the “PPO Share 1000” plan to $1,150, according to the class action lawsuit.

Taub claims these planned increases in deductibles and co-pays will effectively reduce the coverage policyholders had purchased for the entire year and constitute a breach of its obligations under its policyholders’ insurance contracts, as well as a breach of its duty of good faith and fair dealing.

The Anthem Blue Cross class action lawsuit is seeking declaratory relief, damages for “failure to provide benefits under the contracts” and punitive damages.

The case is Taub et al. v. Blue Cross of California d/b/a Anthem Blue Cross et al., No. BC457809, California Superior Court, Los Angeles County.