Wednesday, December 28, 2011

Blue Shield Settles Deceptive Application Lawsuit

Health Insurer Blue Shield has agreed to a two million dollar settlement with the Los Angeles City Attorney’s Office. Former City Attorney Rocky Delgadillo alleged the not-for-profit insurer misled some of its 400,000 Californian policy holders into making innocent errors or omissions on applications, which Blue Shield later used as a pretext for retroactively canceling insurance policies. Amber Stephens reports from Los Angeles.