Blue Cross of California, one of the state's largest health insurance companies, is being
investigated
for sending letters to doctors asking them to identify any medical
events that could be used to cancel a new health plan membership. As we
wrote
in November, Blue Cross and other California insurers have already been
investigated for fraudulently rescinding coverage for minor
discrepancies in health insurance applications after members file a
medical claim for payment. In fact, Blue Cross was fined $1.2 million
after the state determined it was illegally canceling coverage by
mining applications for minor errors after they had already been
approved.
Compounding the insidious nature of these events, insurerers, notably
HealthNet, were found to provide employee bonuses based on how many policies were cancelled.