California Seeks Millions In Fines Against Blue Shield (knocked more than 200 people off of medical

[Omaha Steve]

http://www.laborradio.org/node/7501

California Seeks Millions In Fines Against Blue Shield - 12/14/07

Blue Shield is under fire in California for allegedly violating laws that knocked more than 200 people off of medical coverage. Jesse Russell takes a look:

California’s Insurance Commissioner Steve Poizner is seeking $12.6 million in fines against Blue Shield. He is accusing the insurance company of violating claims-handling laws 1,262 times. The result of those violations, according to Poizner, has been more than 200 individuals losing medical coverage. This is the first time in California history that the Department of Insurance has taken legal action over cancellation policies. Blue Shield issued a strongly worded statement on Wednesday saying the company is “outraged by the excessive penalties for nonsubstansive issues” and that the company is being fined for practices that have been “approved” for years by the department. Blue Shield of California Life and Health covers 167,000 individuals in the state.