Details emerge in Blue Cross fraud case

More details have emerged about allegations that WellPoint subsidiary Blue Cross of California has routinely canceled the policies of members with health problems. The Los Angeles Times talks with attorney William Shernoff, who began gathering evidence for a class action suit last year after learning of the existence of a unit within the company responsible for looking for cases of possible fraud. Four members of the unit testified about its activities in a trial last year. Shernoff argues that the health plan "systematically" reviewed policies--looking for cases in which members omitted information about pre-existing conditions, regardless of whether the omissions were intentional or not. Blue Cross continues to insist it was "screening" for fraud. State officials are investigating.

- see this article from The Los Angeles Times