an equal and opposite reaction
Case Details for "Anthem Blue Cross "
Anthem Blue Cross has agreed to pay a $1-million fine and offer new coverage to 2,330 people it dropped after they submitted bills for expensive medical care.
The California Department of Insurance announced that Anthem Blue Cross will also offer to reimburse those people for medical expenses that they paid out of pocket after they were dropped. In exchange, the state agreed to drop its prosecution of its accusation that the company broke state laws in the way it rescinded members in preferred provider organization (PPO) policies between 2004 and 2008.
The settlement follows Anthem's agreement last year to pay a $10-million fine to settle similar charges involving 1,770 members in HMO-type policies overseen by the Department of Managed Health Care, another state regulator.
In both cases, Anthem agreed to make substantial changes in the way it sells and manages individual insurance coverage in California. Those changes, which include simplifying coverage applications, are expected to reduce the number of people who lose coverage through rescission.
This agreement does not resolve the class actions that remain pending against Anthem, Blue Shield of California and Health Net Inc. alleging that they gamed insurance laws to dump sick people and avoid the costs of their care.
Posted on:2009-02-15
Company: Anthem Blue Cross
Class: Various
Scope: California
Type of Case: Consumer
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