Blue Cross of California Sees the Light

Yesterday, Blue Cross of California relented and agreed to stop using a letter that asks doctors to report conditions that would give the insurer cause to cancel new patients’ health insurance coverage.

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

It is just incredible to me that Blue Cross of California felt that it would be appropriate for doctors to act as their private investigators to provide information detrimental to their own patients. Blue Cross of California seems to be waging war against it own policyholders. Last year, California fined Blue Cross $1 million for unfairly revoking health coverage. The Blue Cross name is a big one and with that comes market share. But at some point, their reputation is going to be such that policyholders are going to find other options.