The AAJ yesterday cited a Los Angeles Times report that a decision last month by the California Court of Appeal in Los Angeles opened the door for increased scrutiny of health insurers’ practice of rescinding the policies of sick patients. According to the Times the court ruled “that local prosecutors could sue health insurers over the way they treat consumers,” in “a high-stakes lawsuit accusing Anthem Blue Cross of California of violating state business laws by selling the promise of insurance but rescinding coverage after policyholders submit claims for costly medical care.” It was also reported that Blue Cross argued that its “rescission practices fell under the jurisdiction of the state Department of Managed Health Care and not the Los Angeles city attorney’s office,” but “the appellate court rebuffed those arguments, saying the law was ‘unambiguous’ in giving the city attorney the authority to sue.” Allowing local prosecutors to sue the health insurers hopefully will prevent frivolous denials of benefits by the insurers.

Storm thrown property can lead to liability
The AAJ reported today that “The AP (11/13, Crumb) reported, “The Iowa Supreme Court on Friday overturned lower court rulings and said a minister who crashed his car trying to avoid a trampoline that had blown into the road during a storm can sue its owners.