Hospitals File Suit Over Health Insurance Rescission

Law360, New York (October 13, 2006, 12:00 AM EDT) -- In a twist, a proposed class action lawsuit has been filed on behalf of California hospitals that claim they’re getting stuck with the bill after insurance companies rescind medical coverage to patients who have already received care.

The named defendants are Blue Cross of California, Blue Cross Life & Health Insurance Company and their parent company, WellPoint Health Networks Inc.

“The entire system gets strained when the health plan doesn’t pay their claims,” said Glenn Solomon, an attorney for the plaintiff. “The hospital is left with...
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