Blues stops asking doctors for rescission help

Blue Cross of California faces physicians' scorn and regulatory scrutiny over asking doctors to help cancel individual health policies.

By Emily Berry, AMNews staff. March 3, 2008.

After revelations that it was asking physicians to help the company find reasons to cancel members' policies, WellPoint-owned Blue Cross of California in February said it would stop sending letters asking doctors to review patients' insurance applications.

But repercussions of its attempts to get physicians to cooperate in the plan's controversial attempts at insurance rescission are just beginning.

California State Assembly Member Hector De La Torre drafted legislation that would require health plans to gain final approval from the Dept. of Insurance or Dept. of Managed Care before cancelling policies. Later, Los Angeles City Attorney Rocky Delgadillo launched his department's own investigation into health insurers' practices, putting up a Web site (www.protectingtheinsured.org) for consumers and physicians to send information about possible malfeasance.

The issue also caught the attention of Calif. Gov. Arnold Schwarzenegger, who said it was another indication of the need for comprehensive health system reform. "People who are not insured have to live in fear, and people who are insured have to live in fear," he said. "That is outrageous."

Shortly after the governor's remarks, Blue Cross announced that it would stop sending the letters, saying it had "determined this letter is no longer necessary, and in fact was creating a misimpression and causing some members and providers undue concern."

A copy of the letter obtained by AMNews said in part: