California court rules against insurer over policy cancellations
January 14th, 2008 Posted by: Dr. Dobson
A California appeals court ruling may bode well for physicians and patients in their fight against alleged illegal policy cancellations by health insurance companies.
A three-judge panel of the 2nd District Court of Appeal unanimously ruled that the practice of reviewing individuals’ applications after they have submitted claims and then pulling the coverage based on alleged errors “is flatly prohibited” under state insurance laws. The Dec. 4, 2007, decision gave the green light to a patient’s class-action lawsuit alleging that Blue Shield of California tried to dodge claims by looking for supposed misstatements or omissions on patients’ policy forms after approving treatment.
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