UNH - Legislation aims to make it easier for consumers to sue health insurers

Joaquin Corbalan/iStock via Getty Images Legislation introduced in the House of Representatives last week would ban mandatory arbitration clauses in health insurance contracts so that consumers could bring legal action against insurers. The bill, the Justice for Patients Act, was introduced on June 16 by Rep. Katie Porter (D-Calif.). Many insurers currently have mandatory arbitration clauses so that if a member has a dispute over a claim or coverage is denied, the only way to seek recourse is through arbitration, rather than suing the company or joining a class-action lawsuit. H.R. 3947 aims to change that, Porter says, by allowing consumers to take insurers to court over bad faith claims settlement practices, fraud, and denying treatment. The legislation has been endorsed by groups including the  American Association for Justice, Public Citizen, and Social Security Works. Major health insurers at the end of trading on Friday: UnitedHealth Group (UNH) -1.7%; Anthem (ANTM) -2.3%;

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Legislation aims to make it easier for consumers to sue health insurers