CA judge tells insurer not to seek $1,000 settlements

A California judge has issued a temporary restraining order against health plan Anthem Blue Cross, barring the company from offering former customers $1,000 to give up the right to file legal claims against the plan. The order follows a class-action lawsuit filed by the Los Angeles city attorney for allegedly dropping beneficiaries who incur significant medical charges.

The Blue plan previously reached a settlement with the state's Department of Managed Health Care last summer on related charges, which required it to offer new coverage to roughly 1,700 policyholders who had been canceled. Around that time, Anthem made the $1,000 legal settlement offer.

When the city attorney learned that Anthem planned to send out a second notice recapping its offer, it requested the order, arguing that the settlement offer was misleading.

To learn more about this dispute:
- read this San Francisco Chronicle piece

Related Articles:
Los Angeles sues Anthem for individual policy cancellations
CA regulators plan limits to health policy cancellations
Blue Cross of CA settles plan-cancellation suits

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