CA Blues to offer renewed coverage to hundreds of former policyholders

Blue Shield of California has agreed to offer renewed coverage to 678 former PPO customers whose policies were rescinded since 2004.

Back in July of last year, Blue Shield reached an agreement with the state Department of Managed Health Care to offer to reinstate the policies of 450 HMO consumers. Now it has reached a similar settlement with the California Department of Insurance.

To fight further illegal rescissions, Blue Shield of California will also change its application forms, alter its broker training and underwriting practices, and set up a third-party review for rescissions.

If the company doesn't follow the agreed-upon guidelines, it will be fined $5 million by the state of California.

To learn more about the settlement:
- read this Modern Healthcare piece [1] (reg. req.)

Related Articles:
L.A. sues Blue Shield of CA over cancellations [2]
Kaiser, Health Net agree to reinstate 1,200 beneficiaries [3]
California's policy-cancellation war [4]
Health Net reinstating 926 California policyholders [5]