Blue Cross makes about-face on cancellations

[HM2VikingRN, RN]

Blue Cross makes about-face on cancellations

The insurer says it won't rescind coverage unless it can prove deception.

By Lisa Girion, Times Staff Writer

May 11, 2007

Blue Cross of California agreed Thursday to stop canceling individual health coverage unless it can show policyholder deception-a major shift by the state's largest health insurer that could lead to sweeping industrywide changes.

The move is part of an effort to settle a class-action lawsuit on behalf of as many as 6,000 people canceled since late 2001. It is an about-face for Blue Cross in what had become known as "use-it-and-lose-it" health coverage because the cancellations were often triggered by patients' claims for treatment.

The insurer's new stance is aimed at ending rescissions based on policyholders' honest mistakes, inadvertent errors and other inconsistencies about their medical histories on applications for coverage. Consumers contend that the forms are purposely confusing, increasing the odds that applicants will make mistakes.

"This is a very significant consumer health victory ... something we believe they should have been following all along," said Cindy Ehnes, director of the state Department of Managed Health Care.

http://www.latimes.com/news/la-fi-insure11may11,1,2535088.story?track=rss&ctrack=1&cset=true

[oramar]

I just read an article somewhere about this. Perhaps it was WSJ. Anyway, the article documents a list of underhanded tricks as long as my arm. Glad to hear that these shaky characters are being taken to task.

[Mijourney]

I just read an article somewhere about this. Perhaps it was WSJ. Anyway, the article documents a list of underhanded tricks as long as my arm. Glad to hear that these shaky characters are being taken to task.

Oramar, while I don't necessarily agree with all the Blues policies, I will tell you, on the basis of friends and family experiences, that people will lie on insurance forms when it's to their advantage and they think they can get away with it. Instead of making an appointment to get help filling out forms, people just write whatever.

[CCL"Babe", BSN, RN]

One Blue Cross's policies may be different from anothers as they are indiviually owned.