690 – Blue Cross vs LA
Excerpted from Medical News Today
Los Angeles Files Lawsuit Alleging Anthem Blue Cross Illegally Canceled Health Insurance Policies
Los Angeles City Attorney Rocky Delgadillo on Wednesday filed a lawsuit against Anthem Blue Cross alleging the insurer violated more than 25 state and federal laws and “sold people false promises of coverage and concealed a scheme to renege on policies for those diagnosed with serious and often expensive medical conditions,” the Los Angeles Times reports. Delgadillo claims the insurer issued false promises of coverage and concealed a plan to rescind the policies for patients diagnosed with serious and costly medical conditions. The suit seeks restitution for patients left with medical bills and more than $1 billion in penalties.
The lawsuit claims that the company’s coverage “is largely illusory.” Delgadillo said Anthem “engaged in an egregious scheme not only to delay or deny the payment of thousands of legitimate medical claims but also to jeopardize the health of more than 6,000 customers by retroactively canceling their health insurance when they needed it most.” He added, “Countless Californians who believe they have insurance actually have policies that aren’t worth the paper they’re printed on.”