CA Insurance Commissioner David Jones flexed his goosestepping police power and denied Blue Shield's request to withdraw certain products from the market.
Jones' department said Tuesday that Blue Shield's proposal for closing its insurance plans did not comply with the requirements of the state insurance code. Specifically, it found that the company's proposal to place customers whose plans would be closed with others in a much smaller actuarial pool was not fair to those being reassigned. A lawsuit had been filed against the plan by a consumer group last month.
"When consumers purchase health insurance, they should not have to worry that their health insurer will make decisions to open new products and close others in ways that put the policyholder at risk of being pooled with unhealthy lives whose claims costs are likely to cause premiums to increase," said Jones.
Really?
So the alternative is what?
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