Health Insurers Waived Arbitrating Claims of Illegal Plans

Aliera Co. and Trinity HealthShare Inc. waived their right to arbitration and must face a lawsuit alleging they sold health insurance plans with an unlawful dispute resolution procedure, a federal court in Washington state said.

The companies engaged in conduct inconsistent with the right to arbitrate when they brought a motion in court seeking to dismiss plaintiffs’ claims, the U.S. District Court for the Western District of Washington said Monday.

Gerald Jackson, and others whose claims were denied, alleged Aliera and Trinity sold them unauthorized health insurance plans and violated the Washington Consumer Protection Act.

The plaintiffs said the multi-tier ...