Calif. Insurance Head Vetoes Blue Shield's Policy Shutdown

Law360, New York (July 05, 2012, 6:40 PM ET) -- California Insurance Commissioner Dave Jones on Tuesday denied Blue Shield of California's plan to close several of its health policies to new customers, saying it violated state rules designed to protect consumers from large rate increases.

The decision comes three weeks after the advocacy group Consumer Watchdog filed a proposed class action accusing the insurance giant of illegally shutting down policies in order to nudge sicker patients into plans that cost more or provide fewer benefits.

Blue Shield had proposed closing off new enrollment for 22...
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