Sacramento Bee (California)
State health plan regulators, answering accusations of foot-dragging by consumer advocates Tuesday, say it will take time to craft rules that keep insurers from retroactively canceling policies.
“Consumers deserve for us to move forward, but in a thoughtful and realistic way,” said Lynne Randolph, spokeswoman for the state’s Department of Managed Health Care. “We don’t want to put something forward that’s going to be challenged (in court).”
A consumer group has accused the state’s managed health care regulator of stalling on new regulations that would police California insurers.
“Why the delay? They’re obligated to move in a responsible manner,” Jerry Flanagan, spokesman for the Foundation for Taxpayer and Consumer Rights, said of the Department of Managed Health Care. “Nothing explains the delay. There was a flurry of activity, then nothing.”
“Patients cannot afford for you to allow another company’s recission policy to leave more Californians uninsured, uninsurable and facing unpayable medical bills,” foundation officials wrote to the DMHC on Tuesday, saying the department is “complicit” in the illegal activity.
State managed health care regulators in 2006 began to crack down on illegal behavior by health plans — fining Blue Cross of California $200,000 for wrongfully pulling the coverage of a Los Angeles-area woman and opening up probes of Blue Cross, Kaiser Permanente and Blue Shield.
After the Los Angeles-based consumer group petitioned DMHC regulators for new regulations in December 2006, agency officials agreed they were needed, and issued a report sharply critical of Blue Cross practices.
The agency followed by levying another $1 million fine in March against Blue Cross for routinely and illegally rescinding health insurance policies from 2004 to 2006. The policies were stripped after Blue Cross members submitted a health insurance claim or received medical treatment.
“Our report reinforces suspicions that Blue Cross‘ practices irreparably harm the consumer,” DMHC officials said.
Randolph said her agency is reviewing health plans’ practices and working with consumer groups to write regulations that will stand up to court scrutiny. Doing that, she said, takes time.
