Blue Cross of CA settles plan-cancellation suits

Blue Cross of California has settled a group of 70-odd lawsuits and claims filed by patients who alleged that the health plan canceled their insurance after they got sick. The settlement comes in response to pressure from state regulators, which already fined the health plan $200,000 for canceling one California woman's policy, according to the Los Angeles Times. While the dollar amount was not disclosed, the patients received a substantial cash settlement and are "pleased" with the outcome, according to one plaintiff's attorney. Five other suits, including one filed against Blue Shield of California, are currently pending, according to the Times.

The suits accused Blue Cross of exploiting a state law allowing health plans to cancel individual policies if the insured lied on their application. They contended that the insurer intentionally designed the forms to be misleading, generating innocent mistakes that could be used against them as evidence of deceit. Blue Cross only checked over the forms when a patient filed a claim for treatment of a chronic condition or costly care, the plaintiffs said.

Find out more about the suit:
- read this article from the Los Angeles Times

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