Anthem Blue Cross agrees to settle with California Department of Insurance over rescinded health insurance policies
12 02 09 - 11:52
Anthem Blue Cross to pay $1 million fine
Associated Press
California's largest for-profit health provider, Anthem Blue Cross, has agreed to pay a $1 million fine and take back 2,330 people whose insurance was rescinded after they submitted bills for expensive care.
In a settlement with the state announced Wednesday, the company also will reimburse the dropped patients for medical costs they've paid since their policies were terminated, which the company estimates will cost it another $14 million.whose insurance was terminated.
The state Department of Insurance agreed to stop pursuing allegations that the company broke state law when it dropped patients with preferred provider organization policies between 2004 and 2008.
In July, the company paid $10 million to the Department of Managed Care for another 1,770 members with health maintenance organization policies who were dropped for similar reasons.
Anthem Blue Cross and other major California insurers still face individual and class-action lawsuits from many of those whose insurance was terminated.