Health Net to pay $40M to settle San Diego lawsuit over misleading directories
The entrance to San Diego City Hall Photo by Chris Stone Times of San Diego Insurance carrier Soundness Net has agreed to pay million to settle a lawsuit brought by the city of San Diego that alleged the company misled consumers regarding the scope of coverage and services within its infrastructure The settlement stems from a lawsuit filed four years ago that claimed Soundness Net s curative and mental robustness provider directories included inaccurate information such as providers who no longer contracted with the consumer s plan or incorrect provider contact information The complaint alleged Soundness Net s directories had an overall error rate which included an error rate of over for psychiatrists The lawsuit also laid similar contends against Kaiser and Molina Healthcare and the cases against those companies remain ongoing Under state law all vitality insurance companies that do business in California must provide accurate provider directories and Medical Net is no exception California Attorney General Rob Bonta mentioned in a comment In the modern day s settlement will aftermath in industry-leading changes changes that are long overdue and that stand to benefit Californians As part of the settlement Wellbeing Net will pay million toward California consumer protection law enforcement efforts and million to endorsement compliance programs aimed at improving the accuracy of its provider directory Various of the compliance programs include the creation of an automated process that will regularly update the provider directory a -hour phone line to assist consumers looking for providers and hiring a consultant to advise the company on how to improve its directory Accurate provider directories are critical for patients seeking care San Diego City Attorney Heather Ferbert commented When insurance companies misrepresent their networks they create blockades that leave families scrambling and vulnerable patients without access to doctors they were promised This settlement ensures accountability and puts protections in place to stop Physical condition Net s misleading practices and give patients access to the care they expect from their wellbeing insurance
