According to the class action lawsuit, Blue Shield is forcing customers to either pay higher premiums or switch to a worse policy.
A college professor and mother of two with a serious illness said a Bay Area hospital denied potentially life-prolonging treatment, despite approval from her insurance company.
Health insurance premiums for more than 300,000 Blue Shield customers in California went up eight percent under a rate increase that took effect Thursday.
A California legislative committee on Wednesday narrowly approved a bill that would give state officials the power to reject proposed health insurance rate increases, but even some supporters said it will need major changes to survive.
A bill that would allow state officials to reject rate increases proposed by health insurers is under intense lobbying pressure as it faces a key committee vote this week.
Blue Shield of California promised Tuesday to cap its profit margin and give any extra money directly to policyholders.
Democrats in the California Assembly on Thursday narrowly approved giving state regulators the power to reject rate hikes proposed by health insurers, voting after Republican lawmakers walked out of the chamber in protest.
For the second time this year, Blue Shield of California is facing scrutiny from a state regulator on double-digit rate hikes for individual health insurance policyholders.
Blue Shield of California says it is withdrawing its plan to increase health insurance rates for individual policyholders in what would have been the third such rate hike since October.
California Insurance Commissioner Dave Jones is calling for changes as the state’s health insurance premiums continue to rise.