Blue Cross halts letters amid furor

Tags: Blue Cross + letter

elliot
elliot posted on Feb 14th 2008 9:18AM; via latimes.com/business/la-fi-blu...
Blue Cross halts letters amid furor

Facing a torrent of criticism Tuesday, Blue Cross of California abruptly halted its practice of asking physicians in a letter to look for medical conditions that could be used to cancel patients' insurance coverage.

In a statement issued about 6 p.m., the state's largest for-profit insurer said, "Today we reached out to our provider partners and California regulators and determined this letter is no longer necessary and, in fact, was creating a misimpression and causing some members and providers undue concern.

Blue Cross sent physicians copies of insurance applications filled out by new patients, along with the letter advising them the company had a right to drop members who failed to disclose "material medical history." That could include "preexisting pregnancies."

The letter asked physicians to "immediately" report any discrepancies between their patients' medical condition and the information in the applications.

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