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Blue Cross Draws $1M Fine For Cancellation Policies

Law360 (March 22, 2007, 12:00 AM EDT) -- Setting an example for insurers statewide, regulators fined Blue Cross $1 million after an investigation found that California’s largest health insurer had repeatedly dropped policyholders who had fallen ill or become pregnant.

Following a two-year review, the Department of Managed Health Care issued the fine to provoke Blue Cross to change its policies and practices and said Thursday it planned similar inspections of other health insurance providers in California.

The department’s critical report does not bode well for Blue Cross, which has been accused in dozens...
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