Friday, April 18, 2008
The California Department of Managed Health Care says it will reinstate the insurance policies of 28 people whose coverage was wrongly terminated. Regulators say they're continuing to investigate insurance company practices. KPBS Reporter Kenny Goldberg has more.
State regulators have fined a number of health insurers for illegally cancelling coverage. But consumer advocates complain up until now, regulators have forced companies to reinstate only one policy. The announcement signals a change.
The Department of Managed Health Care says it recently reviewed 286 terminations from Kaiser, Anthem Blue Cross, and Blue Shield. Department officials are ordering the companies to reinstate 26 of these policies. Insurers maintain they have the right to cancel coverage if a person lied on their application.
State officials say in these 26 cases, there's no evidence of that. Regulators have also ordered an independent review of every health policy cancellation over the last four years.Kenny Goldberg, KPBS News.