Retroactive Review of Health Insurance Coverage by Blue Cross of California Results in Cancelled Policies
Blue Cross of California allegedly adopted a practice, implemented by a “retroactive review department,” that combed the medical history of a claimant to find a “material misrepresentation” in order to cancel their health insurance policy. This investigation was done, not at the time of issuance of the coverage, but after the policy had been issued, after substantial premiums had been collected, and after a claim for benefits had been submitted by the insured. In other words, it was not performed when the applicant completed and submitted a detailed health history questionnaire and before the coverage was placed.
The practice at issue, referred to as “post-claim underwriting,” is not new. It has long been a practice of insurers, particularly those issuing disability policies, but has recently been adopted by health insurers to eliminate the financial exposure from paying large claims of seriously ill members.
Blue Cross of California wrongfully cancel your individual policy? You may have a lawsuit. Click here, for a top rated law firm to evaluate your legal rights. [Sponsored Link] This practice is specifically prohibited under California law.
A number of lawsuits were filed against Blue Cross and Blue Cross of California in March 2006. Moreover, State Insurance Commissioner, John Garamendi, has launched a probe into the practices of Blue Cross in rescinding health policies. Insurance consumers, and particularly those who have purchased individual health policies from Blue Cross, need to be vigilant as to this practice which seeks to deprive health insurance policyholders of valuable insurance coverage at a time when it is most needed: after they become seriously ill and submit claims for benefits.
For a further discussion on the alleged practices of Blue Cross, click here.
Blue Cross of California wrongfully cancel your individual policy? You may have a lawsuit. Click here, for a top rated law firm to evaluate your legal rights.
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