A class-action lawsuit filed Friday on behalf of all California hospitals accused Blue Cross of California of routinely violating state law by refusing to pay hundreds of hospitals statewide for patient care it authorized. At issue in the suit, filed in Los Angeles County Superior Court, is the cost of care for patients whose coverage Blue Cross later canceled. The unpaid bills could be huge because Blue Cross cancellations often involve costly medical procedures. In many cases, canceled patients are unable to fully reimburse hospitals. The suit seeks payment for all treatment the state's largest health insurer authorized for such patients over the last four years, as well as interest and punitive damages.
Earlier Healthcare Shopper reported that Blue Cross was fined $200,000 for rescinding individual health insurance policies, the cause of these unpaid hospital bills.

While I was recovering from a spinal fusion, Blue Cross cancelled my membership because they had not received my premium payment for that month. I called and pleaded with Blue Cross to help me get through this terrible time. I have been a Blue Cross member for 35 years and I needed their help. I was told I would have to be re-instated and re-qualify. I said you're (expletive) crazy and hung up. I was in so much pain it was impossible to argue. I needed my medicine and they refused to help me. Now, try this. Recover from a major back surgery, "Spinal Fusion#3,4,5". 8 inch Rods screwed to your spine 10 inch incision down the lower back with 2 more on your left side. The pain level is impossible to even think about. Well, I some how survived the hell the forced me to live in for three months. So I called Blue Cross again but this time I went to the newly elected CEO at WEllpoint. He passed me around to another person she passed me around to another person then I had a conference call with another person and explained my situation again. I told them all the B.S. I had to go through over my premium payment. The days I had to suffer without any medicine. How they refused to take a late payment from me. I tried to send a payment while I was sick and you said they would just send it back to me. You said I had to be re-instated and did not know if I would even qualify for re-instatement. I had to suffer without my medicine half the time. They now say send us $800.00 and we will re-instate you. WHAT! You made me suffer for no reason. I had to spend my money on costly perscriptions instead of a $10.00 co-pay. I was forced into cancellation over one Premium Payment. Blue Cross thinks I'll just go away and they won't have to pay for my surgery. They are so wrong. I have written about 20 letters to people on the News and Blue Cross. Now I just need to hire an Attorney. Thank you for your time. From, Recovering Wendy