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Blue Cross Accused of Illegal Policy Cancellations
The California Department of Managed Health Care has accused Blue Cross of California of illegally canceling individual health insurance policies and has issued a $1 mil fine in the case. The DMHC contends that health insurers must prove the applicants intentionally lied on their applications to provide cause to cancel policies. Blue Cross has argued that any factual ommission or misstatement is grounds for recinding individual health insurance policies regardles of the applicant's intention. Blue Cross recinded about 1,000 policies last year.
Blue Cross is not alone. THe DMHC plans to investigate Kaiser Permanente, Blue Shield of California, Health Net and PacifiCare as well.
Posted by Phil Daigle on April 3, 2007 8:34 PM
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