Wellpoint Pays $6M To End Insurance Rescission Suit

Law360, New York (June 21, 2013, 3:41 PM EDT) -- The city of Los Angeles said Thursday that it had reached a $6 million settlement with managed health care provider Wellpoint Inc., ending a suit accusing the company's subsidiaries of improperly rescinding health care coverage to avoid paying hefty medical bills.

The $6 million payout includes an agreement that Wellpoint and co-defendants Anthem Blue Cross and Anthem Blue Cross Life & Health Insurance Co. will comply with all relevant state rescission rules, according to Los Angeles City Attorney Carmen A. Trutanich. The companies maintain no wrongdoing...
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