Hospital Group Sues Elevance Over Policy Barring Use of Non-Network Doctors

Hospitals are subject to an administrative equity penalty if they continue referring to out-of-network providers.

The headquarters of Blue Cross Blue Shield health insurer Anthem in Indianapolis on Oct. 27, 2003. A.J. Mast/Getty Images

The California Hospital Association on May 4 sued Elevance, the nation’s fifth-largest health insurer, to block implementation of a policy it calls unfair and illegal.

The policy, slated to take effect in California on June 1, imposes penalties on hospitals in the Anthem Blue Cross and Blue Shield network that refer Anthem patients to care providers that are out of network.