Milliman IntelliScript Violated Consumer Reporting Law, Class Action Says

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A proposed class action lawsuit accuses consumer reporting agency Milliman, Inc. of violating federal law by failing to maintain reasonable procedures to ensure the “maximum possible accuracy” of its reports.

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More specifically, the 15-page lawsuit says the company, which operates as Milliman IntelliScript, has run afoul of the Fair Credit Reporting Act (FCRA) by publishing inaccurate medical and prescription history information, impeding consumers’ efforts to correct errors by concealing the true sources of its data, and failing to reinvestigate after a consumer files a dispute.

The agency’s reports—which it sells to insurance companies to help determine individuals’ eligibility for coverage—allegedly contained inaccurate data that falsely portrayed consumers as “sickly” and “caused the insurers … to view them as a health risk when they were not,” which in turn meant consumers were denied coverage or quoted higher rates, the suit claims.

According to the case, the reports contain consumers’ medical and prescription histories—including drug names, dosages, fill dates, pharmacies and physician details—which are directly obtained from pharmacies, medical providers or third-party companies known as pharmacy benefit managers.

As the complaint tells it, the defendant’s reporting procedures prioritize speed and are intended to “maximize the number of reports that contain information, accurate or not.” In fact, the processes “frequently allow the information belonging to one consumer to appear in the consumer file of another,” the filing alleges.

In addition, despite the FCRA’s requirement that the defendant clearly disclose to consumers its sources of information when requested, Milliman IntelliScript simply provides individuals with the details in their files and fails to identify from whom it obtained the data, the lawsuit claims.

In October 2022, one plaintiff, a Missouri resident, applied for a medical insurance plan with Aetna, which in turn requested a consumer report from the defendant that included the woman’s medical and prescription history, the suit explains. Per the case, the report sold by Milliman IntelliScript to Aetna was “grossly inaccurate,” as it listed 15 medications the plaintiff had never been prescribed and included “over one thousand records of treatments Plaintiff never received, from doctors she has never seen, for maladies including chest pain, anxiety, scoliosis, hypertension, heart disease, nursing facility care following surgery, home hospice care, degenerative disease of nervous system, malnutrition, skin cancer, fainting spells and falls, and cognitive impairment.”

After the plaintiff was denied a policy with Aetna because of the report, the woman requested a copy from the defendant and was “horrified” by the inaccuracies she found, the complaint contends. The letter from Milliman IntelliScript that accompanied the report failed to identify the sources of the information, and in November of that year, the plaintiff informed the defendant of the errors, the filing relays. According to the lawsuit, the defendant merely responded by instructing the woman to request a copy of her prescription and medical records in order to process the dispute and “took no further action to reinvestigate” the erroneous data the company had published and sold about the plaintiff.

Another plaintiff, a Los Angeles resident, applied for life insurance in the summer of 2022 with Prudential, which then similarly requested a consumer report from the defendant, the suit says. As the case tells it, the report sold by Milliman IntelliScript to Prudential incorrectly listed physicians who had never treated the plaintiff and included six pediatric medications that had actually been prescribed to the man’s young son.

According to the complaint, the plaintiff had been denied life insurance in the past because of an inaccurate consumer report, so when he learned that Prudential would not sell him a policy because of the defendant’s report, he requested a copy of his file. The plaintiff was “shocked” at the data he found and contacted Milliman IntelliScript to dispute the errors, the filing says. In September of that year, the company sent the man a letter admitting the inaccuracies and attached a corrected report, but it did not identify the source of the erroneous data, the case states.

The lawsuit looks to represent anyone in the United States, since April 30, 2022, about whom Milliman IntelliScript sold a report to a third party containing information that did not pertain to the subject of the report. The suit also looks to cover anyone in the United States, since August 28, 2016, to whom Milliman IntelliScript responded to a consumer request for information with a document that did not identify any third-party sources from which the defendant obtained the information on the report.

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