The Quisenberry Law Firm files lawsuit on behalf of C.A.R. against Blue Shield of California to preserve medical insurance for more than 8,000 members and their families
February 12, 2007
As published on C.A.R.'s website
LOS ANGELES (Feb. 12) – The CALIFORNIA ASSOCIATION OF REALTORS® (C.A.R.) today announced it has filed a lawsuit against Blue Shield of California to prevent cancellation of medical insurance affecting more than 8,000 members and their families. C.A.R. also has filed a preliminary injunction due to the irreparable harm Blue Shield’s actions have caused.
“We were abruptly notified – by mail – that our insurance coverage was being canceled,” said C.A.R. President Colleen Badagliacco. “Families are scrambling unsuccessfully to find replacement coverage by May 31. Many have operations scheduled, others are recovering from surgeries and require continued medical care or additional therapy. Some are dying and are in need of palliative care during their last days. Blue Shield is denying them all, just when they need medical care the most.”
Under state law, group medical coverage is guaranteed as long as C.A.R. continues to meet legally stipulated guidelines, as it has done with policies underwritten by Blue Shield since 1999.
“Blue Shield is not allowing us the opportunity to try and resolve this issue. Blue Shield has shown a callous disregard for the more than 8,000 people who will be stranded without medical coverage and has refused to engage in any meaningful discussions with C.A.R. or RealCare, our insurance broker,” Badagliacco said.
“We strongly believe that Blue Shield terminated medical insurance coverage without cause. We are committed to doing everything possible for our members and intend to explore every legal option available so that our members and their families have access to the medical care they rightfully deserve. We expect to prevail with the litigation.
“Blue Shield of California’s annual revenue tops $7.5 billion. If Blue Shield can arbitrarily cancel medical coverage for more than 8,000 Californians simply by writing a letter, every one of Blue Shields’ 3.3 million customers across the state should be concerned,” she said.
Leading the way...® in California real estate for more than 100 years, the CALIFORNIA ASSOCIATION OF REALTORS® (http://www.car.org/) is one of the largest state trade organizations in the United States, with nearly 200,000 members dedicated to the advancement of professionalism in real estate. C.A.R. is headquartered in Los Angeles.
UPDATE (3/16/07): The preliminary injunction against Blue Shield, scheduled for March 14th, 2007 has been moved to April 6th, 2007 due to Blue Shield’s filed objection.
Blue Shield has recently cancelled all of the medical plans offered through C.A.R. effective May 31, 2007. After fruitless negotiations with Blue Shield to rescind their cancellation, C.A.R. is undertaking immediate LEGAL action to try to protect the rights of members in the health plan by filing a lawsuit and preliminary injunction to overturn the cancellation. A notice of this cancellation has been sent to all members/insureds. Members/insureds affected by this cancellation have several options and should call RealCare at (800) 939-8088 ext. 208 to discuss their particular insurance situation.
In order to keep members informed of changes and alternatives due to this cancellation, a Web site, http://realcare.biz/html_new/bsupdate.php, has been created that contains information on the Blue Shield action and updated status on the situation. The Web site will post information on the changes that will take place, the timing of the changes, links to the Dept. of Insurance and Dept. of Managed Health Care, and further information. Members may also wish to contact Blue Shield, the state of California departments in charge of this insurance issue and their state legislators to log a complaint as noted below.
- Blue Shield of California: Bruce Bodaken, Chairman & CEO: (415) 229-5000
- Blue Shield of California: Mark Gastineau, VP Small Group Sales: (818) 228-2633
- California Department of Insurance: Consumer Hotline: (800) 927-HELP (4357)
- California Department of Managed Health Care HMO Help Center: (888) HMO-2219 or (888) 466-2219
- Your state representatives: Go to http://www.leginfo.ca.gov/yourleg.html to find out whom to contact.
- State of California Dept. of Managed Care Complaint Form: http://www.dmhc.ca.gov/dmhc_consumer/downloads/complaint.pdf
- State of California Dept. of Insurance Request for Assistance: http://www.insurance.ca.gov/contact-us/0200-file-complaint/upload/Revised_English_CSD_012_RFA_Form.pdf
To view the medical benefits information on the member benefits page, click here.
