California Student Sues Health Plan Over Revoked Insurance. We Should Do The Same Here.

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 pre-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. (Xinhua)

***** The types of cunning tricks, procedures and small print rules that money hungry insurance companies employ to cheat the innocent client is shameful. The bottom-line for these greedy corporations is profit and more profit. When a person covered by hospitalization benefits, usually after paying a King's ransom in premium, makes one claim, automatically his policy is either withdrawn or deferred under some vague clause or other. The remedy is to pay a much larger premium for the ensuing year.

Of course there are scoundrels who bluff their way into getting policies at premiums they are not entitled to or misuse these benefits by making fraudulent claims. That however does not give insurance companies the right to take the easy and profitable way out by whacking everyone, a majority of whom are genuine cases. Almost all Malaysians have at some time or other dealt with these insurance companies and I'm sure that many have also been either taken for a ride or cheated outright by these so-called insurers.

This court case is a welcome one and should set the tone for future good or bad practices by heartless and greedy insurance companies. I'm sure there are many other instances of insurers cheating the public and clients duping the companies. You are welcome to share your experience here.
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