BLUE CROSS SUED; HMO ACCUSED OF IMPROPER SURCHARGE.Byline: Chris Sieroty Staff Writer WellPoint Health Networks Inc.'s Blue Cross of California subsidiary is being sued by two subscribers who claim the managed-care provider improperly im·prop·er adj. 1. Not suited to circumstances or needs; unsuitable: improper shoes for a hike; improper medical treatment. 2. imposed a 20 percent surcharge An overcharge or additional cost. A surcharge is an added liability imposed on something that is already due, such as a tax on tax. It also refers to the penalty a court can impose on a fiduciary for breaching a duty. on their premiums, a charge denied by company officials Wednesday. The lawsuit, filed in Los Angeles Los Angeles (lôs ăn`jələs, lŏs, ăn`jəlēz'), city (1990 pop. 3,485,398), seat of Los Angeles co., S Calif.; inc. 1850. Superior Court, seeks class-action status on behalf of all subscribers affected by the change. The suit brought by Michael C. Kirchner and Elizabeth P. Kirchner, seeks unspecified Adj. 1. unspecified - not stated explicitly or in detail; "threatened unspecified reprisals" specified - clearly and explicitly stated; "meals are at specified times" damages. The suit, which was filed late Tuesday, claims that beginning in November 1994, Blue Cross' changes to the policies of about 12,000 subscribers led them to pay 20 percent more than others with a similar policy. Robert S Robert, Henry Martyn 1837-1923. American army engineer and parliamentary authority. He designed the defenses for Washington, D.C., during the Civil War and later wrote Robert's Rules of Order (1876). Noun 1. . Gianelli, the Kirchners' attorney and a partner with the Los Angeles-based firm Gianelli & Morris, said Blue Cross in the early 1970s sold policies to customers in their 20s promising an age-related benefit, or slow rate of increase in premiums. However, five years ago, the health care company moved from ``closed'' to ``open'' blocks of business and began charging the higher premiums to policy holders who were now in their 50s, said Gianelli. With the change in policy came the 20 percent increase in rates. ``They didn't want to honor the old policy that restricted the amount of premiums the company could charge,'' he said. ``This is an old case that deals with technical legal questions regarding premiums,'' WellPoint spokesman John Cygul said, refusing to discuss the specific allegations. ``We will defend ourselves vigorously.'' If a jury rules in the Kirchners' favor, Gianelli said, one of California's largest managed-care providers could owe ``tens of millions of dollars'' in back premiums. HMOs have faced increased scrutiny in courts nationwide. On Monday, a lawsuit filed in Miami federal court claimed that Louisville, Ky.-based Humana Inc. committed fraud by concealing con·ceal tr.v. con·cealed, con·ceal·ing, con·ceals To keep from being seen, found, observed, or discovered; hide. See Synonyms at hide1. from its subscribers the way it actually decides to approve treatments and pay claims. The suit, filed on behalf of two Riviera Beach Riviera Beach (rəvēr`ə), resort city (1990 pop. 27,639), Palm Beach co., SE Fla., on Lake Worth (a lagoon); inc. 1922. Research and development firms are located in the growing city. , Fla., police officers, also seeks class-action status. Shares of Thousand Oaks-based WellPoint lost 37.5 cents Wednesday, falling to $51.6875. |
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