Insurance carrier Health Net has agreed to pay $40 million to settle a lawsuit brought by the city of San Diego that alleged the company misled consumers regarding the scope of coverage and services within its network.

The settlement stems from a lawsuit filed four years ago that claimed Health Net’s medical and mental health provider directories included inaccurate information, such as providers who no longer contracted with the consumer’s plan or incorrect provider contact information. The complaint alleged Health Net’s directories had an overall 18% error rate, which included an error rate of over 35% for psychiatrists.

The lawsuit also laid similar claims against Kaiser and Molina Healthcare and the cases against those companies remain ongoing.

“Under state law, all health insurance

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