Friday, November 15, 2013

Lawsuit alleges insurance companies are at fault for cancellations


Millions of insurance policies are being canceled across the nation, and while companies are blaming Obamacare – it appears that plain old greed is the real reason. Consumers in California say that their insurance company caused their cancellations, to jack up their premiums under the ACA.  Paul Simon and Catherine Corker are suing Anthem Blue Cross in their state, claiming that the company tricked them into giving up their “grandfathered plans” - which they could have kept even after the healthcare law.

Their lawsuit states, “Blue Cross concealed information about the consequences of switching plans and intentionally misled its policyholders to encourage the replacement of grandfathered policies.”  Just like President Obama said, if these customers liked their healthcare plans, they could have kept them under the healthcare law.  But, Blue Cross enticed customers to change policies in 2011, which meant their plans were no longer “grandfathered-in” to the healthcare law.

When they were invited to switch plans, customers were not told that they would lose their right to keep their plans, and were not given accurate information about future price increases.  And now, Mr. Simon and Ms. Corker want the courts to stop Blue Cross from canceling more plans without allowing customers to switch back to their original policies.  If this happened in California, we can only wonder how many more cancellations are the result of the same deceptive tactics. 
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