SAN FRANCISCO (CN) – Kaiser Permanente and California’s largest health insurers have 30 days to hand over financial records for Attorney General Jerry Brown’s investigation of how they review and pay claims. Brown’s office began investigating the companies in September 2009, driven by reports that they were denying 28 to 40 percent of claims. Subpoenas have been issued to Aetna Health, Anthem Blue Cross, CIGNA, Health Net, Blue Shield of California, Kaiser Permanente and PacifiCare.
Brown also will examine the legality of Anthem Blue Cross’ recent rate hikes and the possibility of rate increases for other insurers, and complaints about the health plans they provide: from denial of claims to reduced or delayed payments.
“We have been looking at these companies for a number of months and are very concerned that some of them are unjustly raising premiums and denying payment of legitimate claims,” Brown said in statement. “Not only are the rate increases devastating to Californians strapped by the economy, but in some cases, they are possibly illegal.”