California's health insurance exchange is facing a lawsuit for contracting with Kaiser Permanente, which was recently fined $4 million by the state for problems with its mental health services, according to a Law360 report.
In June, California's Department of Managed Health Care fined Kaiser for improperly monitoring mental health care available to beneficiaries, according to the report. The current lawsuit against the insurance exchange was filed by the National Union of Healthcare Workers.
"By contracting with Kaiser despite these findings and the issuance of unprecedented fines assessed by the state against Kaiser, the exchange plainly has violated its statutory duty only to contract with health plans in 'good standing' and in doing so, has endangered the exchange's potential consumers, Kaiser's current patients, and [its] current mental health care professionals," according to the complaint as cited in the report.
A statement from Kaiser disputes the NUHW's claims: "The assertions that NUHW is making are patently untrue. Kaiser Permanente has been approved for, and will enthusiastically participate in, the Covered California health plan exchange. Kaiser Permanente is in good standing and fully licensed by the state to offer health insurance in California. There are no restrictions on our ability to offer health insurance, including in the Covered California exchange."
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