I wonder how much they saved by not having to pay the claims for all these people whose policies were canceled?
Blue Cross of California systematically violates state law when it cancels health insurance policyholders after they get pregnant or sick, making no attempt to determine whether the consumers did anything to merit such harsh treatment, a scathing investigation by state regulators has found.As a result of its unprecedented investigation, the Department of Managed Health Care today fined Blue Cross $1 million. The department's findings also expose the company, the state's largest health insurer, to legal liability in dozens of lawsuits filed by consumers who allege their policies were illegally canceled, subjecting them to substantial hardships.
Other major insurers face similar investigations and are targets of lawsuits over similar charges.
The investigation found that Blue Cross used computer programs and a dedicated department to systematically cancel the policies of pregnant women and the chronically ill regardless of whether they intentionally lied on their applications to cover up pre-existing medical conditions, a standard required by state law for canceling individual policies. Regulators examined 90 randomly selected cases of policy cancellations and found violations in each one.
Hat tip, Kevin.
