Blue Cross fined $1M; dropped policies

Source: Associated Press

LOS ANGELES - State regulators fined California's largest health insurance provider $1 million for violating state law, saying an investigation found that the company systematically dropped policyholders after they became sick or pregnant.

Officials with the Department of Managed Health Care said they hoped the fine would prompt changes at Blue Cross of California, and they plan similar investigations into other health insurance providers in the state, the Los Angeles Times reported Friday.

The department's findings could expose Blue Cross to legal liability in dozens of lawsuits filed by consumers who allege their policies were illegally canceled.

The investigation found that Blue Cross used computer programs and a dedicated department to cancel the policies of pregnant women and the chronically ill regardless of whether they lied on their applications about pre-existing medical conditions — a standard required by state law.

Read more: http://news.yahoo.com/s/ap/blue_cross_fine

well, i guess we know who came out on top on that deal.

This was probably what they saved by dropping one cancer patient. Insurance execs will have a special place reserved for them in hell.

they've certainly lost money on him and we haven't had any problems across two states and three jobs. It is a shame to hear that they haven't treated everyone fairly. :(

:silly:

Heart transplant? Sure! Pregnant? No way!

I wonder if it is a problem with California in particular or a gender bias.

And they aren't at all needed in a universal health care system.

They're leeching 30%+ off the medical system, already.

Cheaper to pay the fine then follow the law.

Why don't people go to the doctor and get something diagnosed in an early stage? What, and get it on record so they can drop you?