L.A. city attorney says CA health insurer made illegal settlement offer

Anthem Blue Cross of California has apparently gotten itself into further legal problems while trying to extricate itself from previous ones. The insurance company, which was previously accused of rescinding some six thousand individual policies after members filed medical claims, has now been slapped with a suit by Los Angeles City Attorney Rocky Delgadillo for allegedly attempting to settle with ex-members unlawfully by offering them $1,000 to drop all legal claims.

According to Delgadillo, the WellPoint subsidiary apparently began sending out packets to 1,770 former members who had been disenrolled from individual policies in recent years. The packet allegedly included a letter offering them a $1,000 payment if they would release all legal claims against Anthem with "no questions asked." The notice also told former members that they'd be able to get new coverage as part of a separate settlement between Anthem and the state's Department of Managed Health Care.

Anthem and WellPoint are already in deep water with the city attorney. Delgadillo previously filed a $1 billion suit against the two, saying that they deliberately revoked about 6,000 individual policies after members filed medical claims. A hearing on that motion is set for Nov. 4.

For more information about this legal action:
- Read this Modern Healthcare piece (reg. req.)