OAKLAND, Calif. -- Besides nationwide criticism, hearings and investigations, Anthem Blue Cross came into the cross hairs of a major consumer lawsuit Tuesday.

The suit could upset Anthem Blue Cross's rate increases as it seeks to fold 800,000 individual and family policy holders into a class-action lawsuit.

In its suit, the advocacy group, Consumer Watchdog, claims Anthem Blue Cross's rate hikes are illegal.

The Feller family of San Rafael told KTVU that in the last year their Anthem Blue Cross rates have gone up 80 percent and are now more than their monthly mortgage payments.

"Our health insurance rates have actualy gone up abougt 700% since 2001," Mary Feller said.

Feller also says her 26-year-old. separately insured daughter, who has cancer, may soon lose her insurance because her rates have tripled in the last 4 years.

"California law says that if an insurance company is gonna swtich people around in plans," Harvey Rosenfield, Consumer Watchdog atttorney and author of the 1988 insurance refrom initiative Proposition 103 told KTVU. "They have to either offer plans of comparable benefit or keep premiums about the same and blue cross did neither."

In its suit, Consumer Watchdog has asked for an immediate injuction to stop the increases.

"I can't imagine a judge is not gonna see that there is irreperable harm to famliies like the Fellers for being forced to pay so much more in premiums," Jamie Cort, Consumer Watchdog director said.

Mary Feller sees these relentless increases in more stark terms, "One major illness away from bankruptcy. That's what these plans are leading to."

When contacted by KTVU, Anthem Blue Cross of California said it had not seen the suit and had no comment.

But Prop. 103 author Rosenfield said, though Anthem customers in group plans haven't been hit, it's only a matter of time.

Rosenfield wrote landmark Proposition 103 -- a law that forced auto, home and business insurers to get approval before raisng rates.

Despite many court fights since it passed, runaway home and auto rate hikes have stopped.

So now, Rosenfield says, heath insurers will face a rate regulation proposition.

"It's clear to us that that's where this has to go," he said,

Consumer Watchdog's Jamie Cort agrees -- "from the point of view of consumer watchdog... We are prepared to go to the ballot."