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Blue Cross won't rescind coverage without cause

Managed Care Weekly Advisor, May 16, 2007

In a reversal of its previous policies, Blue Cross of California announced it will stop canceling individual health coverage unless it can prove purposeful deception on the part of the policyholder. The largest health insurance provider in the state, Blue Cross made the decision following a class-action lawsuit filed by nearly 6,000 people whose coverage has been cancelled since 2001.

Insurers reserve the right to deny coverage to individuals based on medical history or answers to detailed health questions on policy application forms. Consumers claim the forms are purposely confusing and increase the odds of errors. Blue Cross has rescinded 1% of new enrollments since 2003, or 1,000 policies out of 260,000 new enrollments annually.

To read more about the decision click here.