California student sues health plan over revoked insurance

A college student is suing a major California health insurance provider that dropped him out of the health plan, asking the judge to order the company to stop canceling the policies of people who get sick and submit claims for treatment.

The lawsuit filed Thursday against Blue Shield of California for a sweeping injunction is the latest twist in a controversy over a practice that has left thousands of people with big medical bills and no coverage, The Los Angeles Times reported Friday.

What makes the new suit unusual is that it seeks to force Blue Shield of California, to stop the practice, rather than demand compensation for a policyholder who lost coverage.

The suit could have a wide effect if it succeeds, the newspaper report said.

The case concerns college student Justin Sigman, who became ill while visiting relatives in Texas, leading to hospital treatment for gastroenteritis and dehydration.

The bill of more than 9,000 dollars was sent to Blue Shield, along with a medical history indicating Sigman suffered bouts of diarrhea in the past, according to the suit and his lawyers.

Sigman contends he was unaware it was significant enough to include on his coverage application. And in addition to the broad injunction, he wants his coverage reinstated.

Cancellations are an issue for consumers who buy their own coverage. Unlike job-based group coverage, which is guaranteed to all eligible employees regardless of health, individual insurance policies are medically underwritten, meaning that health plans choose their customers based on health status and per-existing conditions.

In a raft of suits, policyholders say Blue Shield and other health plans use purported application problems as pretexts to jettison costly policyholders.

Source: Xinhua