Blue Cross is asked to substantiate claims that it had revised its rescission practices.The Los Angeles city attorney's office has expanded its probe of patient cancellations to the state's largest for-profit insurer, Blue Cross of California.
A letter sent to the insurer last week asks Blue Cross President Leslie Margolin to substantiate claims by the company in a Feb. 23 press release that described changes it had made to help avoid improperly canceling policyholders.
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The letter from Assistant City Atty. James W. Colbert III, dated Friday, advises Blue Cross that a special litigation unit headed by Colbert is "investigating whether the rescission practices of Blue Cross may constitute violations of" the state's unfair competition and false advertising laws.
Colbert's letter demands that Blue Cross back up statements in the press release that the company had taken steps in 2006 to "strengthen and make more transparent our process for rescinding policies in order to further minimize the possibility of errors."
LA TImes
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