Lieff Cabraser is investigating complaints that Blue Shield of California is not properly paying back policyholders for its excessive administrative spending in 2014. If the State of California’s investigators find that Blue Shield did indeed underpay their obligations, the insurer will likely be forced to pay additional rebates to its customers.
This is yet another recent problem for Blue Shield, California’s third-largest health insurer, as it recently lost its tax-exempt status for its failure to deliver required public benefits, such as affordable coverage.
The company has over 3 million customers in California, and these newest allegations come in the wake of a series of administrative errors Blue Shield made as it extended its existing coverage in 2014 as part of the Affordable Care Act. The core of the current issue is a legal requirement that customer premiums go in major part toward actual patient care, and not to executive compensation and other administrative costs.
Contact a Consumer Fraud Attorney at Lieff Cabraser
If you are a Blue Shield policy holder under an individual plan — that is, you purchased your Blue Shield plan on your own, rather than through an employer — we urge you to contact us to discuss your potential case and recovery against Blue Shield. The information you provide will assist in further investigation, and will help us hold Blue Shield accountable for any improper conduct.