L.A. City Attorney Wins Order Against Insurer in Rescissions Case
On Monday, Superior Court Judge Anthony Mohr issued a temporary order barring Anthem Blue Cross of California from having notices sent to former members whose coverage the insurer had rescinded, the AP/San Francisco Chronicle reports.
Anthem Blue Cross planned to have a third-party contractor send notices to consumers today as part of a July 2008 settlement with California regulators over the insurers' rescission practices.Â
The notice would have offered to reinstate former members' coverage, as well as $1,000 to forgo legal action against Anthem Blue Cross over the rescissions.
Los Angeles City Attorney Rocky Delgadillo sought the restraining order, arguing that the notice did not adequately explain what rights members would waive by accepting the money.
Delgadillo is pursuing a class-action suit against the insurer over its rescission practices.Â
Nick Velasquez, a spokesperson for Delgadillo's office, said the restraining order blocks the state's settlement with Anthem Blue Cross, but attorneys for the insurer dispute that interpretation of the order.A hearing on the matter is scheduled for Feb. 5 (AP/San Francisco Chronicle, 1/26). This is part of the California Healthline Daily Edition, a summary of health policy coverage from major news organizations. Sign up for an email subscription.