Blue Cross of California Responds to Recent Media Coverage of Rescission

THOUSAND OAKS, Calif., Feb. 23 /PRNewswire-FirstCall/ -- Blue Cross of
California is committed to being the industry leader when it comes to
protecting those seeking health insurance. That's why in September of 2006,
Blue Cross was the first health care insurer in California to implement a
series of steps to strengthen and make more transparent our process for
rescinding policies in order to further minimize the possibility of errors.
These initiatives included:
-- Creating a new simplified application for individual benefits policies
-- Revising policies to clarify the initial underwriting process
-- Forming a new committee structure for the rescission review process
-- Adding dedicated liaisons for members undergoing retrospective review
or who have had their policies rescinded
-- Revising documentation to improve the accuracy and consistency of
review processes
-- Enhancing training programs for the underwriting and the retrospective
review process

In addition to these steps, for the past several weeks Blue Cross has been
in the process of developing an outside third-party review process for all
rescission cases. This means an independent, outside agent will help us
validate whether rescission of a member's benefits is warranted. Blue Cross
will be bound by the decision of the third-party reviewer. As the market
leader in California, this practice is intended to further our efforts to
protect all health care consumers.
Rescission, a tool designed to protect the system from abuse, affects a
very small percentage of new enrollments -- roughly one-half of one-percent
out of 300,000 new applicants a year. Blue Cross takes the issue of rescission
very seriously, and we are leading the industry in working with legislators,
regulators, providers and our members to help improve the access to health
care for all Californians.
Leslie Margolin
President
Blue Cross of California
SOURCE Blue Cross of California

Shannon Troughton, +1-404-267-3651, of Blue Cross of California