Blue Cross of California Faces Class Action for Increasing Costs in Middle of Year

Kassouf v. Blue Cross of California (Cal., November 14, 2011)

The plaintiffs brought this action against Blue Cross alleging that the insurer had “unilaterally and dramatically” increased annual deductibles and other annual out of pocket costs in the middle of the policy year. In their complaint, the plaintiffs allege Blue Cross’ conduct has violated several state statutes including the Consumer Legal Remedies Act and the Unlawful, Unfair, and Fraudulent Business Acts and Practices Codes. The plaintiffs seek an order certifying the proposed class, enjoining Blue Cross from future breaches of the plan contracts and violation of the state statutes, a declaration of the rights and obligations under the plan contracts, and compensatory and punitive damages in a sum to be determined at trial. The plaintiffs are represented by the staff attorneys at Consumer Watchdog in California.