The Department of Managed Health Care fined Blue Cross $1,000,000 for the violations and improper handling of claims. Read about it in L.A. Times story by Lisa Girion.

The Department of Insurance has jurisdiction over some of the contracts written by Blue Cross

----the Department of Managed Health Care has jurisdiction over the HMO contacts.

A year ago, the Department of Insurance was at the Woodland Hills office of Blue Cross. They reviewed many claims dealing with rescissions of contracts based on preexisting conditions.

Soon, we will see that the Department of Insurance has also levied a fine against Blue Cross for their violations of the regulations described in the California Insurance Code, section 790.

As both of these State regulatory agencies reviewed the work product of the same insurance company, it follows that they would see the same examples of improper handling of claims.

Next, Blue Shield and Healthnet will be under scrutiny.

I am happy that something is finally being done to correct the abusive practices that have been going on for over two decades.