Obamacare Bait-and-Switch Class Action Lawsuits Target Cigna, Others

Two more insurers have been hit with Obamacare bait-and-switch class action lawsuits with plaintiffs accusing Blue Shield of California and Cigna of providing inaccurate provider lists, reduced benefits from those advertised and other violations of state law.

In the months prior to the 2014 roll-out of the new federal healthcare law, both companies offered new plans that were compliant with updated regulations. However, the Class Members allege that in both cases, they were signed up for EPO plans rather than the more common PPO plans. EPO plans are less expensive for health insurance companies because there are no out-of-network benefits; customers pay all bills out of pocket.

Further, both companies allegedly failed to send out health insurance cards upon consumers’ payment of their premiums, “effectively blocking access to physician and hospital services.” While health insurance plan members may be able to retroactively submit claims, it may be impossible for them to afford the initial payments.

As a result, “Blue Shield’s misrepresentations violate Health and Safety Code section 1360, which bars Blue Shield from: (i) using any advertising or solicitation which is untrue or misleading, or (ii) making any statement or representation about coverage that is untrue, misleading, or deceptive. Blue Shield’s limited provider network and failure to provide coverage further violates other provisions of the Health and Safety Code designed to ensure adequate access to care.”

The Cigna health insurance class action lawsuit also contains similar allegations, but also adds references to a Los Angeles Times report indicating the state requested the company take “California Covered” out of its plan names because it was not a part of the state exchange.

Anthem Blue Cross has also faced similar problems regarding EPO plans and PPO plans in a recent class action lawsuit. The company also allegedly had problems with the rollout, so that the lead plaintiff did not receive her insurance card on time and did not have access to promised providers.

The lead plaintiffs in both class action lawsuits are represented by Consumer Watchdog and Shernoff Bidart Echeverria Bentley LLP. The Law Offices of Scott G. Glovsky also is reprenting the Blue Shield lead plaintiff.

The Obamacare Bait-and-Switch Class Action Lawsuits are Kevin and Jane McCarthy, et al. v. California Physicans’ Service d/b/a Blue Shield of California, et al., Case No. BC558549, and Sheila Davidson, et al. v. Cigna Health and Life Insurance Co., et al., Case No. BC558566, in the Superior Court for the State of California for the County of Los Angeles.