Class-Action Lawsuit Alleges Xerox Failed to Deliver Health-Insurance Coverage

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The Las Vegas Review-Journal reports that the first class-action lawsuit has been filed on behalf of Nevada residents against Xerox, with residents saying that they enrolled in Nevada Health Link and paid insurance premiums, but were never given coverage.

The Law firm Callister & Associates filed the lawsuit on behalf of Larry Basich, who signed up for state health insurance and paid premiums beginning in November, but then was not covered following a $400,000 triple bypass procedure.

The lawsuit was filed in U.S. District Court of Nevada on April 1st, and alleges gross negligence and failure to do due diligence against the state of Nevada, the Silver State Health Insurance Exchange (which runs Nevada Health Link), and the company that won the contract to build the exchange, Xerox.

Xerox had won the contract over four other companies with a proposal to build Nevada’s Affordable Care Act healthcare-exchange. Xerox won the bid after receiving the highest-score on a state criteria list ranging from financial stability to contract experience. The state of Nevada has since given the second-place company, Deloitte Consulting, a $1.5 million contract to fix the Nevada Health Link.

Attorney Matthew Callister of Callister & Associates said that about 40 people said they had also paid their insurance premiums but have no insurance coverage.

Callister says the lawsuit is not an attack on the Affordable Care Act or the state’s insurance exchange, stating to the Las Vegas Review-Journal: “This has nothing to do with the ACA. This is 100 percent about Xerox, who won the bid from the state of Nevada to create this exchange. And they’ve failed. They absolutely failed.”

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