California Health Carrier Called on to Prove Cancellation Improvements Claims.

    Rescission or cancellation of Health Insurance Policies is a hot button Insurance Issue in California at the present time.  There are accusations that Health Insurance Companies rescind or cancel Policies improperly because they have been presented with expensive claims for high medical bills.

    Blue Cross of California issued a press release on February 23.  In the press release, Blue Cross touted changes it already made starting in 2006.  Blue Cross, the press release asserted, changed its cancellation practices in ways that will help Policyholders avoid having their Health Policies improperly canceled.

    The City Attorney of Los Angeles read Blue Cross's press release of February 23.  Six days later, a lawyer who works for the City Attorney sent Blue Cross a letter.  The lawyer introduced himself as the head of "a special litigation unit" looking into Blue Cross's "'rescission [i.e., cancellation] practices'" because those practices "'may constitute violations'" of California's laws against unfair competition and false advertising.

    In other words, the February 29 letter told the press releaser to back up the press release or things would not go well for it.  "If Blue Cross fails to adequately back up its claims," the letter advised, then "the city attorney's office may presume that they were false or misleading and take action, such as issuing an alert to consumers and possibly taking legal action."   Lisa Girion, "Healthcare Insurance Probe Grows" (Los Angeles Times Online, Wed., March 5, 2008).

    If only similar responses would be made to the press releases from those people in Washington.

Please Read The Disclaimer.