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.