Finding Reasons
Jessica Bath wasn’t insured, so she got health insurance through private insurance agent. A year later, her infant son was born with a hole in his heart and a constricted pulmonary valve. Surgery was scheduled five months after he was born. A month before the scheduled surgery, she and her husband got a letter in the mail from Blue Shield saying that both she and her son had been dropped from the plan.
Blue Shield had been informed of the scheduled surgery, but didn’t give a reason for the cancellation in the letter. The reason was that Jessica had not disclosed all the information on the application. In fact, they didn’t even contact Jessica or the insurance agent about what occurred. They didn’t even call the agent or inquire about anything on their application. They just rescinded it. Eventually, Blue Shield said that she had disclosed using an anti-anxiety medication. Apparently, they thought the anti-anxiety medications increase the likelihood of birth defects.
Jessica Bath and her husband are suing Blue Shield. They maintain that Blue Shield wrongfully rescinded the policy belonging to the Bath family. They believe that Blue Shield breached the covenant of good faith and fair dealing.
Regarding the Bath family, Blue Shield issued a statement to CNN’s Larry King saying: “We rescind a minute percentage of policies, less than one-tenth of 1 percent. If we didn’t even rescind those, and we allowed applications to stand, it would only result in higher premiums and less availability of coverage for everyone. Blue Shield of California is a not-for-profit health plan. It’s been a leader in fighting for universal health care.”
Insurance companies are in the business of finding reasons not to spend money. Rescinding less than one-tenth of one percent of policies may seem like no big deal, until it’s your infant child.
Blue Shield had been informed of the scheduled surgery, but didn’t give a reason for the cancellation in the letter. The reason was that Jessica had not disclosed all the information on the application. In fact, they didn’t even contact Jessica or the insurance agent about what occurred. They didn’t even call the agent or inquire about anything on their application. They just rescinded it. Eventually, Blue Shield said that she had disclosed using an anti-anxiety medication. Apparently, they thought the anti-anxiety medications increase the likelihood of birth defects.
Jessica Bath and her husband are suing Blue Shield. They maintain that Blue Shield wrongfully rescinded the policy belonging to the Bath family. They believe that Blue Shield breached the covenant of good faith and fair dealing.
Regarding the Bath family, Blue Shield issued a statement to CNN’s Larry King saying: “We rescind a minute percentage of policies, less than one-tenth of 1 percent. If we didn’t even rescind those, and we allowed applications to stand, it would only result in higher premiums and less availability of coverage for everyone. Blue Shield of California is a not-for-profit health plan. It’s been a leader in fighting for universal health care.”
Insurance companies are in the business of finding reasons not to spend money. Rescinding less than one-tenth of one percent of policies may seem like no big deal, until it’s your infant child.
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