HEALTH PLANS: Wellpoint backs down?

Given that Blue Cross of California Unveils Major Initiative to Revise Rescission Policies and Procedures: in order to stop its retroactive cancellations, and that in its very own press release it quotes :

William Shernoff, an attorney representing some customers who have filed suit claiming rescission of their policies was not warranted, said the actions that Blue Cross has undertaken are appropriate and positive. "I’m impressed with the Blue Cross response to rescission concerns," Mr. Shernoff said. "Blue Cross is stepping up and acting very proactively to streamline the process and ensure fairness."

The new policies and procedures will be submitted to the Department of Managed Health Care and Department of Insurance for review and comment.

Methinks that a big out of court settlement is about to happen. Or else why would Shernoff be sounding quite so cordial. Blue Cross must be hoping that the usually tame DMHC and their not quite so tame “buddy” insurance commish John Garamendi are not going to follow up too much or too expensively.

For a view of what obfuscation may lie behind their shiny new guidelines, see over at Insureblog (yup the one blog that was supporting Blue Cross!).

I personally really hope that this is a case of a big bad insurer mending its ways. Let’s see.

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  1. To be fair, Matthew, we weren’t “supporting Blue Cross” so much as offering an explanation as to why insurers sometimes rescind policies. I made it clear at the top of the post that this was the case.
    And one of our readers, who is active in the CA market, had more details in the comments section of Bob’s follow-up. There may be much more here than the reporter let on.
    Sometimes even the “bad guys” aren’t in the wrong (although we don’t know whether or not that’s the case in the situation about which we posted).
    In the event, thanks for the link!