California Attorney General Edmund Brown Jr. has subpoenaed financial records and other documents from the state’s 7 largest health carriers.
The investigation was spurred partly by reports of large health insurance rate increases, and partly by reports that the largest carriers may be rejecting more than 39% of the claims that they receive, officials say.
Brown is asking the carriers to provide information about:
- How much they are spending on health care.
- How much they are spending on marketing, administration and profits.
- How they review claims and decide how much to pay doctors and hospitals.
- Member and medical provider complaints, including complaints about payment delays, reduced payments and denials of claims, and the health plans’ responses to those complaints.