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Blue Cross At It Again

July 5, 2007 by Jonathan Stein

So on Tuesday, I railed about Blue Cross sending customers a bill so that they can get a bill. Sheesh. Well, it turns out Blue Cross probably was not rescinding policies correctly. Amazingly, they even rescinded at least one policy for an undisclosed prior condition that was disclosed on the application.

One might think it is amazing that this happens, but, alas, it is not. Interestingly, most insurance companies do not look at the policy or the application until a claim is filed. At that point, the application is pulled and the insurance company goes through the application to see if there is grounds to rescind the policy. Seems a bit backwards to me.

You can read more about this and some additional commentary at Injuryboard.

Categories: Consumer Issues, Current Affairs, Insurance Operations, Life and Health Insurance

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