Ten plaintiffs sue Blue Cross of California

By Hubert Vigilla

Published on March 28, 2006

The insurance lawsuits were filed simultaneously in Los Angeles County, Orange County, San Bernadino County, and Riverside County. The suits allege that Blue Cross of California and Blue Cross Life & Health both have a "retroactive review department," a department devoted to discovering ways in which the insurer can escape its obligations to policyholders who become seriously ill or are diagnosed with a serious health condition.

The plaintiffs all had individual health policies, were accepted for coverage by Blue Cross and paid their insurance premiums. After being diagnosed with a serious health condition of which they were previously unaware, Blue Cross authorized medical treatment for each policyholder's respective health concern. However, the plaintiffs allege that Blue Cross rescinded coverage months after authorizing treatment, leaving some with medical bills in excess of $100,000.

The insurance lawsuits claim that Blue Cross violated state laws and called the company's practices reprehensible. The plaintiffs in the cases seek damages, compensation and court orders that will prohibit the alleged practice from taking place in the future.

Claremont-based attorney William Shernoff, who is representing the plaintiffs in this insurance bad-faith suit, said his goal in filing the lawsuits was to shut down the unlawful practices of insurers that hurt patients and policyholders as well as hospitals and medical professionals.

Blue Cross declined to comment on the lawsuits.

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