Crossing the blue line

A California health insurance provider is asking physicians to rat out their patients and provide information that could be used to cancel policies.

The Los Angeles Times reports Blue Cross is sending physicians copies of health insurance applications and is asking them to disclose whether there are any pre-existing conditions for those patients. If those conditions have not been disclosed, the insurer could cancel the policy.

Blue Cross says it's just trying to contain health care costs, but the Times reports that "Blue Cross is one of several California insurers that have come under fire for issuing policies without checking applications and then canceling coverage after individuals incur major medical costs. The practice of canceling coverage, known in the industry as rescission, is under scrutiny by state regulators, lawmakers and the courts."

The California Medical Assn. sent a letter to state regulators Friday urging them to order Blue Cross to stop asking doctors for the patient information, saying it was "deeply disturbing, unlawful, and interferes with the physician-patient relationship."

    -- Jim Grinstead