Anthem Settles Calif. Illegal Rescission Allegations

Law360, New York (February 11, 2009, 12:00 AM EST) -- Wellpoint Inc. subsidiary Anthem Blue Cross Life and Health Insurance Co. has agreed to a settlement deal with the California Department of Insurance that could be worth up to $15 million to quell allegations that Anthem improperly rescinded coverage for thousands of people.

The $15 million total includes a $1 million fine, as well as reimbursement for the out-of-pocket medical expenses of more than 2,300 people whose policies were rescinded between Jan. 1, 2004, and Dec. 31, 2008, which is expected to total about $14 million,...
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