BlueShield Sued Over 'Misrepresentation' on Obamacare Exchange

BlueShield Sued Over 'Misrepresentation' on Obamacare Exchange

San Francisco residents John Harrington and Alex Talon filed a lawsuit against BlueShield in California state court on Wednesday, alleging the health insurer misrepresented the plans offered by the company on the state health exchange, according to a report from Reuters.

Specifically, Harrington and Talon claim they bought “preferred provider network” plans from BlueShield, then discovered after their purchase that the plans would not cover the full network of providers advertised on the company’s website. In the suit, Harrington and Talon claim they visited doctors from January to March of this year, and only discovered after the visits that the providers they consulted were not covered.

According to the complaint, Harrington and Talon were both uninsured before buying BlueShield insurance on the state exchange in an effort to comply with the Affordable Care Act’s individual mandate.

The lawsuit reportedly accuses BlueShield of unfair business practices, false advertising, and breach of contract.

Sean Barry, spokesman for BlueShield of California, told Reuters in a statement: “We take these charges seriously, and believe enrollees should be as informed as possible about the products they select.”