Lawsuit: Insurer Anthem Misleading California Customers

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SACRAMENTO, Calif. (AP) — A California consumer advocacy group is suing Anthem Blue Cross over allegations that the health plan is misleading several hundred thousand customers about changes in their policies for next year.

Consumer Watchdog filed a lawsuit in Los Angeles County Tuesday claiming Anthem is charging more for inferior coverage and burying the changes in a mountain of paperwork.

In most of California, Anthem is changing its “preferred provider organization,” or PPO, plans that provide coverage for out-of-network doctors to “exclusive provider organization,” or EPO, policies that do not.

Consumer Watchdog says many customers chose PPO plans specifically for the option to use out-of-network providers and will be surprised when their bills are no longer covered.

Anthem says state regulators approved the changes and the lawsuit is without merit.

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