Blue Shield of California reinstates members in settlement with state

NEWS IN BRIEF — Posted Feb. 2, 2009

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In what is expected to be the last of several agreements between California insurers and state regulators over individual policy rescissions, Blue Shield of California has agreed to offer new coverage to 678 former members, to pay for those people's past medical bills and to change underwriting practices going forward. Blue Shield did not admit any wrongdoing in the settlement, which was reached Dec. 29, 2008.

Health Net and PacifiCare, a UnitedHealth Group subsidiary, reached similar agreements with the Dept. of Insurance in 2008. The state's Dept. of Managed Health Care, which regulates HMOs, also has settled with insurers over what the state said were unfair rescissions and cancellations.

A bill that would require the state's review and approval for any rescissions passed both the state assembly and state senate last year but was vetoed by Gov. Arnold Schwarzenegger. The same bill has been reintroduced in the current legislative session.

Note: This item originally appeared at

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