Los Angeles Attorney General investigating Health Insurance Companies Rate Hikes and Claim Denials

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[Best Syndication News] The Los Angeles Attorney General, Edmund G. Brown Jr. announced that his office has subpoenaed financial records and other documents from seven of the largest health insurance companies in California to further investigate unwarranted rate hikes and denial of coverage cases.

Brown said that this investigation into the unfair practices of these health Insurance companies have been going on for several months. Brown said, "Not only are the rate increases devastating to Californians strapped by the economy, but in some cases, they are possibly illegal."

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The health insurance companies that had their records subpoenaed by Brown are:

Aetna Health
Anthem Blue Cross
CIGNA
Health Net
Blue Shield of California
Kaiser Permanente
PacifiCare

They only were subpoenaed for the pay-for-service health plans, not the HMO plans. There was a separate subpoenas issued last month to the same companies in regards to the HMO plans. The companies have 30 days to provide the records and financial information requested by the attorney general.

The reason for the investigation was back in September their was reports that California's five largest health insurance companies were denying insurance claims at a rate of up to 39.6 percent.

Recently Anthem Blue Cross has been scrutinized over premium rate hikes for individual healths of up to 39 percent. The investigation will determine if Anthem Blue Cross is fair under California law. The attorney general investigators will make sure that the health care dollars are spent on health care and are not overspending on things like administration, profits, or marketing.

The investigation will determine if there are any violations of the California's Unfair Competition Law and False Advertising Law. If the attorney general determines that the health insurance company has violated this code a file civil law enforcement action could force and injunction on the company to stop doing business in the state and to return money to the customers.

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