A consumer group took a legal action on Monday against Anthem Blue Cross, claiming the increase in cost will force policyholders into poorer health insurance policy.

The lawsuit was filed two days before executives from health insurers, WellPoint Inc. and Anthem's parent company were called to meet in Washington with the Obama administration to talk about increasing premiums.

The lawsuit filed in California states that Anthem Blue Cross violated a California law which offers new, similar coverage or reduce premium increases at the close of the policy.

"We could either stay with our old coverage or switch to a new policy with much lower benefits. What Blue Cross did not tell us was that staying with our better policy would mean a 39 percent rate increase”, said Mary Feller of San Rafael, California, one of the named complainant in the suit filed in Ventura County Superior Court by the Consumer Watchdog group on behalf of policyholders.

Around 800,000 Californians have health insurance policies with Anthem Blue Cross.

The lawsuit, Feller and Freed against Anthem Blue Cross, Case No. 56-2010-00368587-CU-BT-SIM, were looking for indefinite compensation for the claimant and a court order excluding future so-called violations of the state health and security code.