HEALTH PLANS: Shernoff files suit against Blue Shield

Los Angeles health care attorney William Shernoff filed a lawsuit on Friday seeking to block Blue Shield of California from retroactively canceling member policies after claims have been approved, a practice that critics allege is far more common in the insurance industry than has been reported. The Los Angeles Times reports that the suit may have broad implications for insurers across the country: 

"What makes the latest suit unusual is that it seeks to stop the practice, rather than demand compensation for a policy holder who lost coverage. It could have a wide effect if it succeeds, because Blue Shield alone has  acknowledged canceling about 300 policies in the last two years.  The outcome also could influence other insurers that collectively have revoked thousands of policies in recent years.

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  1. Anthem as another very nasty case in federal court at the moment. One that spans several states, and will set precendent for any agent who’s ever been cancelled for “no cause”.
    IF this goes thorugh, if won’t ony be Anthem who will be in trouble, it will be ALL health carriers who think they can bully the smaller brokers out of business.

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  3. Yes. You know the easiest way to be perceived as doing things different(ly) and in an innovative way?
    Act differently and innovate, then tell us what you did. It’s really that simple.
    Can someone, anyone, get that the best way to do a good job is, oh yeah, do a good job. Not APPEAR to do a good job, or redefine “do a good job” to mean “get me a fat bonus,” but actually help people live?

  4. From your article link:
    “We want to be perceived as doing things different and in an innovative way. That’s the message we want to get across, said Doug Biehn, corporate marketing vice president at the San Francisco company.”
    Notice that the marketing VP talks about “perception” not reality. Typical. Politicians are liars by nature, lawyers are liars for hire, marketing people are liars by design.

  5. From the San Diego Union Tribune
    Blue Shield would like to hear from consumers
    Blue Shield of California is bringing its portable walk-in video booth to Balboa Park in San Diego from 11 a.m. to 5 p.m. tomorrow in hopes of capturing candid comments from locals about their health care experiences or, as the health maintenance organization, puts it, “the good, the bad and the unbearable – honest and uncensored.”