Blue Cross CA Sued Over Policy Changes

Blue Shield of California faces a class-action lawsuit by customers who claim policy changes by the health insurer force unhealthy and older policyholders into low-benefit coverage plans with high deductibles.

The lawsuit alleges that Blue Shield abused California’s “dual regulator” health insurance system by shutting down blocks of health plans under one agency and opening new ones under the other, according to Courthouse News. The complaint also claims that the company uses huge rate increases and the threat of increases in the closed plans to force “older, sicker” customers into the unfavorable plans or to exclude them entirely.

The lawsuit accuses Blue Shield of violating the Health & Safety Code and Insurance Code. It also claims the company does not warn consumers before it closes health plans and does not offer information on how they can get comparable coverage, according to Courthouse News.

Blue Shield denies the allegations.

If you or a loved one has been the victim of insurance fraud, contact Sokolove Law for a free legal consultation and to find out if you have grounds to pursue legal action.

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