Anthem allowed to move forward with PPO to EPO switch in California

A California judge denied a request for a restraining order which would have stopped Anthem from moving 500,000 customers to plans that only cover out-of-network charges in an emergency.

The Los Angeles Times reported Anthem gave customers until Dec. 15 to switch to another insurer before being automatically switched from a paid provider organization (PPO) plan to an exclusive provider organization (EPO) plan design. Santa Monica-based Consumer Watchdog claimed the notice didn’t clearly inform customers about how such a change would affect them.

The judge ruled the group and the Anthem customers it’s representing lacked standing to ask for a restraining order because they haven’t suffered losses on the policies.

Anthem applauded the decision, saying the case has no merit.

“Anthem Blue Cross is pleased with the court's decision and based on the facts in the case, we believe the decision is appropriate,” company spokesman Darrel Ng said.

Consumer Watchdog attorney Jerry Flanagan said the group isn’t dropping the case and will seek damages for Anthem customers who are hurt financially by the change in plan design.