It has been a bad week for Health Net in California. On Thursday, the health insurance giant was sued by the Los Angeles city attorney on behalf of all Californians for “illegally cancelling policies to avoid paying large claims.” On Friday, a judge ruled against Health Net in suit brought by a Southern California woman for cancelling her insurance as she was undergoing treatment for breast cancer. Although both cases might be viewed as victories, they are properly viewed as symptoms of a terminal illness not a cure.
Feb 12 2008
Make no mistake. One of the central issues in this election is reforming a healthcare system that is designed to generate large profits for the insurance and pharmaceutical companies. Blue Cross just provided more ammunition for why the parasitic insurance industry must be dismantled and destroyed, not given a seat at the table.
Blue Cross of California is asking physicians to violate confidentiality and report pre-existing conditions that new members may have omitted so their insurance coverage can be cancelled.
LOS ANGELES (AP) – Citing an effort to hold down costs, health insurance giant Blue Cross wants doctors in California to report conditions it could use to cancel new patients’ medical coverage, it was reported Tuesday.
The state’s largest for-profit health insurer is sending physicians copies of health insurance applications filled out by new patients, along with a letter advising them that the company has a right to drop members who fail to disclose “material medical history,” the Los Angeles Times reported on its Web site.