Calif. Exchange Sued Over Kaiser Inclusion Amid $4M Fine

Law360, New York (September 5, 2013, 2:09 PM EDT) -- California’s health exchange established under the Affordable Care Act is unlawfully contracting with health care giant Kaiser Permanente, whose unit was fined $4 million in June over issues with its mental health services, an Oakland, Calif.-based labor union argued Wednesday.

State rules require that the state health exchange contract only with plans that comply with regulatory requirements, whereas California's Department of Managed Health Care found earlier this year that the Kaiser Foundation Health Plan does not properly monitor mental health care services available to plan beneficiaries,...
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