Blue Cross slapped with$200,000 fine

California regulators have fined Blue Cross $200,000 for retroactively canceling a woman's coverage after the policyholder required high-cost medical care. Blue Cross canceled the woman's coverage because she hadn't disclosed a corrective surgery she'd had two decades earlier, but a spokesperson for the California Department of Managed Health Care points out that she's had a clean bill of health since then. California law prohibits insurers from rescinding coverage unless they can prove a customer knowingly lied on the initial insurance application.

For more on the fine:
- read this Modern Healthcare report

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