Blue Shield Pays $2M To Settle Policy Rescission Action

Law360, New York (January 4, 2012, 7:12 PM EST) -- Blue Shield of California has agreed to pay $2 million to resolve the Los Angeles city attorney's claims that the insurer unlawfully rescinded health care coverage for more than 850 policyholders who received expensive medical procedures, the regulator's office announced last week.

The settlement includes both the $2 million payment — which will be split between the city attorney's office and the county of Los Angeles — as well as an agreement that Blue Shield will continue to enforce recent changes to its application questionnaire and...
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