Managed Care Weekly Digest
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Health Insurance
Blue Cross and Canceled Policyholders Agree to Settlement
May 28th, 2007
A major class action settlement has been reached with Blue Cross of California, a Wellpoint subsidiary, concerning the cancellation of health insurance policies that occur after a claim for pre-authorized medical treatment. From now on, Blue Cross has agreed that it will not retroactively cancel insureds' health insurance policies unless the insured "intentionally misrepresented" information on the insurance application. "This will stop the practice of canceling health insurance policies for honest mistakes, inadvertent errors, or other inconsistencies that often appear on health insurance applications," said William Shernoff of the Claremont law firm of Shernoff, Bidart & Darras, who...
Source: Managed Care Weekly Digest (2007-05-28)
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