Sarah Mirando  |  December 1, 2011

Category: Legal News

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Anthem Blue Cross “Bait and Switch” Class Action Lawsuit

By Sarah Pierce

 

Anthem Blue CrossA class action lawsuit filed in Superior Court claims Blue Cross of California (doing business as Anthem Blue Cross) uses “bait and switch tactics” to impose midyear hikes of 20 percent or more on its customers – often just two months into the deductible year. This constitutes a breach of contract, according to the class action lawsuit.
 
Named Plaintiff Janet Kassouf says in the Anthem Blue Cross class action lawsuit that she bought a policy with the expectation that annual deductibles and out-of-pockets costs would be fixed for the calendar year. However, “just two months into the deductible year,” Kassouf learned her deductible would go up $450 from $2,500 to $2,950, the complaint states. Kassouf is just one of several named Plaintiffs who are alleging they were victims of Anthem Blue Cross’s “bait and switch tactics.”

“When a consumer purchases a plan with an annual deductible of $2,500, the consumer expects he or she will have to pay for the first $2,500 in health care services during the calendar year, and that the insurer will cover the remaining costs of health coverage according to the terms of the plan contract,” the Anthem Blue Cross class action lawsuit states. “Blue Cross’s unilateral changes to the annual deductible at whim, however, have resulted in a moving target without any certainty of how much a consumer will have to pay to meet the deductible in any given calendar year.”

The Anthem Blue Cross class action lawsuit continues:

“In addition to unilaterally raising the annual deductible and other out-of-pocket costs while escalating premiums, Blue Cross has made other unilateral changes to its individual plan contracts. For example, Blue Cross recently notified policyholders that it was reducing the policy term to just one month, which would purportedly allow Blue Cross to modify any ‘terms and conditions’ of the individual plan contracts, including deductibles and other out of pocket costs, at each contract ‘renewal’ on sixty days’ notice – or up to six times per year.
    
“Through its conduct of unilaterally escalating annual out of pocket costs and unilaterally altering coverage descriptions … to allow Blue Cross to change any benefit on just sixty days’ notice, Blue Cross has breached the individual plan contracts entered into with plaintiffs and California consumers and breached the implied covenant of good faith and fair dealing.”

The Anthem Blue Cross class action lawsuit is seeking damages for breach of contract, breach of implied covenant of good faith and fair dealing, and violations of the Consumer Legal Remedies Act and Unfair Competition Law.

 

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Updated December 1st, 2011

 

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One thought on Anthem Blue Cross “Bait and Switch” Class Action Lawsuit

  1. Anonymous says:

    How do I get added to this claim i thru my 2 forms way one for my daughter
    brittany Tena an d myself. I am the insurance holder and not only did htis happen but are co pAys when up wthiout twlling us…

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