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Insurers' self-inflicted wounds

In yet another example of self-inflicted trauma, an insurer has been accused of illegally canceling health insurance policies for individuals with serious medical conditions.

This time it is Blue Cross of California. According to the story in the LATimes, a family's coverage was canceled by Blue Cross after the insurer uncovered inconsistencies in their insurance application, inconsistencies which, according to Blue Cross, would have caused them to deny coverage for the family.

So let's say the insurer acted appropriately, which in this case appears dubious. But set that aside; health insurers, which aren't exactly beloved by the American consumer, look cheap, heartless, and stupid for this type of decision.

Posted by on September 19, 2006 8:14 AM |

Comments

I couldn't agree more. How hard can it be to treat people the way you would like (and expect) to be treated if circumstances were reversed? Insurers who try to weasel out of paying claims by hiding behind fine print or looking for some obscure technicality as a basis for denying a large claim richly deserve the miserable reputation they have among much of the public. And I'm a free market guy!

Posted by: BC | September 19, 2006 9:12 AM

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