Provider Network Accuracy Targeted in $23M Blue Shield Deal

Blue Shield of California’s decision to settle for $23.4 million a lawsuit challenging the accuracy of its health-care provider network directories resolves one battle but does not address the broader challenge facing health insurers in the state.

Blue Shield, in a settlement with a class of patients who alleged the insurer misrepresented its network, ended a long-running dispute over the number of providers classified as “in-network” in plans issued under Covered California, the state’s implementation of the Affordable Care Act. The settlement, however, exposes a larger problem in the health insurance industry, health-care attorneys told Bloomberg Law.

The settlement stems ...