Blue Cross Stops Controversial Letters

Calif. Gov. Schwarzenegger Assails Insurer's Practice Of Asking Docs To "Rat Out The Patients"

(AP)  Blue Cross of California quickly halted its practice of asking doctors to report conditions it could use to cancel new patients' medical coverage after a widespread wave of criticism.

The move announced Tuesday by the state's largest for-profit health insurer came after a report on the practice in the Los Angeles Times prompted an outcry from doctors, patients, the governor and even presidential candidates.

Blue Cross said it would stop sending letters that asked doctors to immediately report "any condition not listed on the application that is discovered to be pre-existing."

Gov. Arnold Schwarzenegger called the letter "outrageous" and described the practice as asking doctors to "rat out the patients."

Democratic presidential candidate Sen. Hillary Rodham Clinton said the Blue Cross effort was another "example of how insurance companies spend tens of billions of dollars a year figuring out how to avoid covering people with health insurance."

Blue Cross had for years been sending physicians copies of health insurance applications filled out by new patients, along with a letter telling the doctors that the company has a right to drop members who fail to disclose "material medical history," including a pre-existing pregnancy.

Blue Cross is one of several California insurers that have been criticized for issuing policies without checking applications and then canceling coverage after patients run up major medical costs. The practice of canceling coverage is under scrutiny by state regulators, lawmakers and the courts.

"This letter was part of Blue Cross' pattern of unfairly canceling policies when people need coverage most," said Richard Frankenstein, president of the California Medical Association. "We're relieved that Blue Cross is ending this particular tactic but continue to have serious concerns about this company's practices."

WellPoint Inc., the Indianapolis-based company that operates Blue Cross of California, said it was sending out the letters in an effort to keep costs at a minimum and guard against fraud.

There executives only look at bottom line and what affects their bonuses. When the public outcry started to affect their bottom line, then they changed their position. Greed before health care.

[maloneyatl]

It would be very a very interesting follow on to this story to look at the MIB Group (www.mib.com) that assembles consumer health data (along with other personal information) to help insurance companies "manage risk" and "increase profits. Been around since 1902 and is a little known impediment to acquiring all sorts of insurance coverage.

[maloneyatl]

It would be very a very interesting follow on to this story to look at the MIB Group (www.mib.com) that assembles consumer health data (along with other personal information) to help insurance companies "manage risk" and "increase profits. Been around since 1902 and is a little known impediment to acquiring all sorts of insurance coverage.

[rf35]

One small step for America. Now we need to keep the pressure up and get these companies to see that their bottom line can be hurt more by *** thier customers than by doing right by them.

[klingon69]

Frankenstein???
Fitting

[shydroanna]

The health insurance companies already limit how much doctors can make. It is sick. Something needs to be done.

[slim1h2o]

Now is the time to halt the existence of Blue Cross/Blue Shield!

McVet,,I agree, where in the h3ll did America go?

[mcvet]

The new goverment health plans will be even better. Instead of the mean old corporations denying coverage, the Federal government will do it their their place. Won''''t that be great?!


Posted by nathanealy at 11:40 PM : Feb 13, 2008
+ report abuse

Not if we elect Representatives who have care and compassion for PEOPLE and NOT the all mighty dollar. I do not know where the America of my Youth went but I wish someone would bring it back! Sieg Heil Bush

[nathanealy]

The new goverment health plans will be even better. Instead of the mean old corporations denying coverage, the Federal government will do it their their place. Won''t that be great?!

[duffyn]

There is no reason why health insurance needs to be "for profit". We believe health insurance companies are making excessive profits. I would love to see their balance sheets!

[beehive21-2009]

Bluecross, like the rest of the greedy *** ,oil companies,banks corporate America is sick with greed,poor things.