Wednesday, July 16, 2008

L.A. city attorney sues Blue Shield of California over health insurance cancellations

When Blue Shield of California learned Ana Simoes needed emergency surgery to remove her gall bladder, the company OKd the operation but also turned the case over to an investigative unit, according to corporate records disclosed Wednesday.

The cancellation was highlighted by Los Angeles City Attorney Rocky Delgadillo as an example of the allegedly abusive practices at the heart of a lawsuit he filed Wednesday against Blue Shield. The suit contends that Blue Shield has illegally canceled the coverage of more than 850 policyholders including people like the Simoeses since 2002.

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