Los Angeles Judge Issues Temporary Restraining Order Against Anthem Blue Cross in Rescission Case
Los Angeles Superior Court Judge Anthony Mohr on Monday issued a temporary restraining order against Anthem Blue Cross, forbidding the company from offering plaintiffs in a class-action lawsuit $1,000 to drop all legal claims, the AP/San Francisco Chronicle reports. The lawsuit was filed by the Los Angeles city attorney and alleges that the company wrongfully rescinded health insurance policies after members filed costly claims.
In July 2008, Anthem Blue Cross reached a settlement with the California Department of Managed Health Care that requires the insurer to offer coverage to about 1,700 former plan members whose policies had been canceled. In notices to the former members, the company also offered people $1,000 if they dropped their legal claims. However, the city attorney argued that the offer was misleading about the rights former members would be giving up if they accepted the money.
Nick Velasquez, a spokesperson for the city attorney's office, said that the temporary restraining order prevents Anthem Blue Cross from sending out a second notice through the legal mailing service Garden City Group. Anthem Blue Cross said that the restraining order does not block its settlement with the state. Another hearing on the matter is scheduled for Feb. 5 (AP/San Francisco Chronicle, 1/26).
