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Doctors join Blue Cross lawsuit

Physician Practice Advisor, January 3, 2007

The California Medical Association, the state's largest physician organization, has asked to a join class-action lawsuit alleging Blue Cross illegally dumps policyholders after authorizing expensive medical treatment, according to an article in the Los Angeles Times. The medical association represents more than 30,000 physicians, and said the cancellations hurt patients, physicians, and taxpayers, according to the article.

Insurers say they have the right to cancel after issuing coverage and even after approving treatment if application information is incorrect or omitted. The insurers say their ability to cancel policies deters fraud and keeps individual costs down, according to the Times.

Consumer advocates and lawyers for policyholders say the practice violates a 1993 state law that prohibits the cancellation of health insurance unless the company can prove "willful misrepresentation," according to the article.

Click here to read the full Los Angeles Times article.