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Health Insurers Awaiting Orders on Which Policies to Reinstate

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Aired 4/19/09

California health plans are still waiting to find out which policies they have to reinstate. Last week, the Department of Managed Health Care says 26 policies were cancelled illegally. KPBS Reporter Kenny Goldberg has the story.

The orders came after regulators reviewed 286 cancellations by Anthem Blue Cross, Blue Shield, and Kaiser. Regulators say they ordered reinstatements in only the most egregious cases. Officials say they're examining more terminations by these insurers, and are looking into the practices of HealthNet and PacifiCare, too.

In fact, the state says it will review all health policy cancellations over the last four years. Health plans say they may challenge these reviews in court. Plans argue a small percentage of all policies are terminated, and only when a person lied on their application. Regulators say they've received numerous complaints from people whose policy was cancelled after they filed medical claims.

Kenny Goldberg, KPBS News.   

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