STATE REALTOR GROUP SUING BLUE SHIELD MEDICAL PLANS AT RISK FOR 5,500.Byline: GREGORY J. WILCOX Staff Writer The California Association of Realtors said Monday that it is suing Blue Shield of California Blue Shield of California is a not-for-profit health insurance provider headquartered in San Francisco, California. An independent licensee of the Blue Cross and Blue Shield Association, Blue Shield of California is an incorporated, wholly owned subsidiary of California Physicians' to prevent cancellation of medical insurance for more than 5,500 members and their families. The Los Angeles-based trade association, which represents the state's residential real estate industry, seeks unspecified general and punitive damages Monetary compensation awarded to an injured party that goes beyond that which is necessary to compensate the individual for losses and that is intended to punish the wrongdoer. and a permanent injunction permanent injunction n. a final order of a court that a person or entity refrain from certain activities permanently or take certain actions (usually to correct a nuisance) until completed. directing Blue Shield Blue Shield A US not-for-profit health care insurer that is a reimbursement intermediary for physicians. Cf Blue Cross. not to cancel members' policies unless they do not make their payments. The suit was filed Friday in Los Angeles Los Angeles (lôs ăn`jələs, lŏs, ăn`jəlēz'), city (1990 pop. 3,485,398), seat of Los Angeles co., S Calif.; inc. 1850. County Superior Court. It called Blue Shield's action callous. "We were abruptly notified by mail that our insurance coverage was being cancelled," association President Colleen Badagliacco said in a statement. The notice, received in mid-December, gave members until May 31 to find new carriers. The association has also been unable to find a new carrier. "Many have operations scheduled, others are recovering from surgeries and require continued medical care or additional therapy. Some are dying and are in need of palliative care palliative care (paˑ·lē·ā·tiv kerˑ), n an approach to health care that is concerned primarily with attending to physical and emotional comfort rather during their last days. Blue Shield is denying them all, just when they need medical care the most," Badagliacco said. Blue Shield spokesman David Seldin disagreed. "They had failed to comply with the terms of their contract with us," he said. "It's a question of them not meeting the provisions of the contract. That's pretty cut and dried cut and dried cut adj (also: cut-and-dry) (answer) → eindeutig: (solution) → einfach ." Under state law, group medical coverage is guaranteed as long as legally agreed-upon guidelines are met, according to according to prep. 1. As stated or indicated by; on the authority of: according to historians. 2. In keeping with: according to instructions. 3. the association. "We strongly believe that Blue Shield terminated medical insurance coverage without cause," Badagliacco said. The association has slightly more than 200,000 members, and about 5,500 of them have the Blue Shield coverage, said association attorney Debra Ferrier. The contract stipulates that 75 percent of the association's eligible members who want medical coverage must select Blue Shield. But that 75 percent does not include people who have selected another plan, she said. Seldin said the 75 percent participation requirement is designed to spread the risk and keep premiums reasonable. The association has been a Blue Shield customer since 1999. Attorney Heather M. McKeon filed the suit on the association's behalf. "They are using a very technical argument that we disagree with," she said. A hearing on the injunction, which could block the Blue Shield action while the suit works through the legal system, is scheduled for March 14. McKeon also said there were some discussions between the parties after the notice was received, but they didn't go anywhere. greg.wilcox(at)dailynews.com (818) 713-3743 |
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