The "problem" can be fixed relatively easily: when an "insurer" fails to cover a loss of one of its insureds using its own providers or network, the insured can simply go to anyone they can find and they or the third-party provider can submit the claim. This is how proper indemnity insurance works, and it would instantly fix the "technical problems" and "out of date directories" that this insurance company in question is suffering from.
In any case, this company is now the target of multiple class-action lawsuits, including one under RICO. It would be interesting to find out in discovery if publishing bogus provider directories was intentional on the company's behalf. If it is, this opens a great deal of liability for them. We are fortunate that 11 states outright ban mandatory arbitration by insurers with another 3 where the courts de-facto ban it. This means insurers can't get away with this forever.
In any case, this company is now the target of multiple class-action lawsuits, including one under RICO. It would be interesting to find out in discovery if publishing bogus provider directories was intentional on the company's behalf. If it is, this opens a great deal of liability for them. We are fortunate that 11 states outright ban mandatory arbitration by insurers with another 3 where the courts de-facto ban it. This means insurers can't get away with this forever.