Three Hospital Chains Reject Settlement With Anthem Blue Cross
Catholic Healthcare West, St. Joseph Health System and Sutter Health have opted out of a proposed $11.8 million class-action settlement with Anthem Blue Cross over unpaid hospital bills resulting from Anthem Blue Cross' rescission of individual members' health insurance policies, the Sacramento Business Journal reports.
The settlement automatically will cover all other California hospitals that are owed money because of the Anthem Blue Cross rescissions, according to plaintiffs' attorney Glenn Solomon.
If hospitals accept the settlement, they must drop other efforts to collect money they might be owed from Anthem Blue Cross rescissions.
The deadline for hospitals to opt out of the proposed settlement was Aug. 8.
It is unclear how many hospitals are included in the proposed settlement.
The California Hospital Association filed the lawsuit seeking to recoup money for hospitals left unpaid after Anthem Blue Cross rescinded policies.
California regulators launched similar investigations, and the Department of Managed Health Care has reached deals with Anthem Blue Cross, Blue Shield of California, Health Net, Kaiser Permanente and PacifiCare to reinstate coverage and pay fines.
The DMHC agreements establish a process for hospitals to arbitrate claims with insurers but do not go further in pushing compensation.
Moreover, more rescissions are covered under the hospitals' lawsuit because it covers a longer time span.
Anthem Blue Cross has until Aug. 31 to withdraw the settlement offer if not enough hospitals accept it.
According to the Business Journal, the three hospital chains' rejection of the settlement "could be enough to scuttle the deal" (Robertson, Sacramento Business Journal, 8/15).