WellPoint settles with California hospitals over rescissions

Anthem Blue Cross parent WellPoint Inc. has agreed to pay $11.8 million to settle claims from about 480 California hospitals that it failed to cover the bills of patients it dropped after they were treated. The hospitals sued after scores of their patients contended that Blue Cross had illegally dropped them. The hospitals say they provided emergency and authorized care to patients who were, at the time of treatment, Blue Cross members in good standing. Only later did Blue Cross drop the patients and renege on its obligation to pay their bills, the hospitals said.