Blue Shield Sued Over Policy Practices

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L.A. city attorney’s suit contends Blue Shield of California has illegally rescinded the coverage of more than 850 policyholders since 2002.

The latest suit accuses Blue Shield, a nonprofit company based in San Francisco, of using complex and confusing applications for coverage to trick individuals into making mistakes that can later be used against them. The suit seeks fines and penalties of more than $1 billion.

The Blue Shield suit is similar to those that Delgadillo filed earlier this year against insurers Anthem Blue Cross and Health Net. Like Blue Shield, those companies have denied wrongdoing and say they rescind coverage only when necessary.


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