California Wins Big

The California Department of Insurance has reached an agreement with Anthem Blue Cross Life and Health Insurance Company to offer new health coverage to more than 2,300 consumers whose policies were rescinded between Jan. 1, 2004 and Dec. 31, 2008. Blue Cross will also reimburse these consumers for out-of-pocket medical expenses (estimated to be $14 million) and pay a $1 million fine. In addition, the company will implement significant changes in its underwriting and claim practices. Blue Cross insures 50 percent of all Californians with individual health insurance policies.