Blue Cross insurance practices to be probed

By Hubert Vigilla

Published on March 31, 2006

The probe by the state's Department of Insurance comes just days after 10 former Blue Cross policyholders simultaneously filed lawsuits in Orange County, Los Angeles County, Riverside County, and San Bernardino County. The suits allege that Blue Cross Health & Life and Blue Cross of California left patients paying costly medical bills after being diagnosed with serious health problems. Some of the medical bills exceeded $100,000.

Norman Williams, a spokesperson for California Insurance Commissioner John Garamedi, said that they would look into the allegations in the lawsuits and then determine if the former Blue Cross members who had their policies canceled were treated fairly.

Robert Alaniz, a spokesperson for WellPoint Inc., which owns both Blue Cross Health & Life and Blue Cross of California, denied any wrongdoing and stated that the insurers' policies and procedures are designed so insurance premiums are affordable.

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