California health insurers' rescission practices are exposed to more scrutiny

Los Angeles Times, January 4, 2010

The California Court of Appeal in Los Angeles ruled last month that local prosecutors could sue health insurers over the way they treat consumers. The opinion came in a high-stakes lawsuit accusing Anthem Blue Cross of California of violating state business laws by selling the promise of insurance but rescinding coverage after policyholders submit claims for costly medical care. The decision suggests that scrutiny over rescission, as well as other health insurance business practices, will continue and may even expand, legal experts told the Los Angeles Times.