Consumer group files lawsuit against health insurer

Consumer Watchdog filed a lawsuit against Anthem Blue Cross, accusing the health insurer of illegally increasing rates and pushing policyholders to take plans with less benefits and higher deductibles.

Consumer Watchdog filed a lawsuit against Anthem Blue Cross, accusing the health insurer of illegally increasing rates and pushing policyholders to take plans with less benefits and higher deductibles. The lawsuit follows the insurer's much publicized California rate hike.

The changes, which may have affected 800,000 individual policyholders, were slated to go into effect March 1 but Anthem delayed the rate hike for the investigation.

In the last week, health insurers have faced mounting pressure, and prosecutors in California subpoenaed financial records for Anthem Blue Cross, Aetna Health, Blue Shield of California, Cigna, Health Net, Kaiser Permanente, and PacifiCare in relation to possible rate hikes.

Several CEOs of health insurance companies are expected to meet with HHS Secretary Kathleen Sebelius March 4 to discuss the rates of premiums.


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