“Each one of those cases is a person who had insurance and got sick. They filed for payments authorized by their coverage and Blue Shield said no and attempted to cancel their policies. These sick people then had to fight tooth and nail to get the payment to their doctors so they would not be liable for the bill. In over 200 of those cases they lost and the companies dropped them completely from coverage. Of course that means that they then have a pre-existing condition and thus would have a next to impossible time getting coverage from another company.
“It is a disgusting practice that is all about trying to squeeze out a few more dollars in profits. It is illegal and I am glad to see the state launching the investigation and moving to fine them. It sure would be nice if that dissuaded the companies from trying this in the first place, but I don’t hold out that much hope that it will.”
Blue Shield Illegally Canceling Policies, Working Californians, December 13, 2007