Anthem Sued by California Hospital Group Over Network Penalties

Anthem Blue Cross’s new policy penalizing hospitals for allowing out-of-network doctors to treat patients is facing a challenge from a California trade group, who sued Monday claiming the insurer violated the state’s consumer protection and healthcare laws.

The California Hospital Association alleges Anthem’s out-of network policy forces hospitals to violate state law by conditioning medical staff privileges on whether doctors have contracts with the insurer, according to its complaint filed in California Superior Court, Los Angeles County. The policy, set to take effect June 1, would impose a 10% penalty on hospital claims involving non-contracted providers and could lead to ...