California Officials Fight Order in L.A. Civil Case on Policy Rescissions

California officials have filed briefs seeking to block a court-ordered deposition of an Anthem Blue Cross executive from happening later this month, arguing that the deposition could derail a settlement that the Department of Managed Health Care negotiated with the insurer over health insurance policy rescissions, the Los Angeles Daily Journal reports.

The deposition -- related to a lawsuit brought by Los Angeles City Attorney Rocky Delgadillo -- is expected to expose details of negotiations between DMHC and Anthem Blue Cross (George, Los Angeles Daily Journal, 11/7).

Delgadillo Lawsuit

Earlier this year, Delgadillo filed suits against Anthem Blue Cross, Blue Shield of California and Health Net, alleging that the insurers committed to cover medical claims and then launched investigations to rescind coverage when members submitted costly claims (California Healthline, 8/13).

Representatives for Delgadillo have said that they want court oversight of the state's settlement negotiations with the insurers over rescissions.

State Arguments, Next Steps

Amy Dobberteen, chief of enforcement with DMHC, said her department is battling to stop the deposition because it is inappropriate to disclose details of the state's private negotiations. She said that would have a "chilling effect" on any coming negotiations with industries that the state regulates.