profession
California court approves challenge to Blues rescissions
NEWS IN BRIEF — Posted Jan. 4, 2010
California physicians won an early round in court in what they say is their attempt to hold health insurance plans accountable for unfairly canceling patients' policies and leaving doctors with unpaid bills.
The 2nd District Court of Appeal on Dec. 15, 2009, allowed Los Angeles city officials to pursue a lawsuit alleging Anthem Blue Cross of California's rescission practices violated state insurance and consumer protection laws. Judges rejected the WellPoint-owned plan's claims that only state insurance regulators have enforcement authority over managed care organizations.
The California Medical Assn. and Los Angeles County Medical Assn. filed a friend-of-the-court brief in the case supporting the city's lawsuit, saying insurance regulators' enforcement activities have done little to deter abusive practices.
At this article's deadline, no hearing dates in People v. WellPoint had been scheduled.
Note: This item originally appeared at http://www.ama-assn.org/amednews/2010/01/04/prbf0104.htm.