Los Angeles city attorney sues insurer over health policy cancellations

Los Angeles City Atty. Rocky Delgadillo has filed a lawsuit on behalf of the residents of Los Angeles against Blue Shield of California. The suit contends that Blue Shield has illegally canceled the coverage of more than 850 policyholders since 2002. Blue Shield spokesman Tom Epstein defended the cancellations, and called the suit "a cheap political stunt" that was "totally without merit." The suit is similar to those that Delgadillo filed earlier this year against insurers Anthem Blue Cross and Health Net. Like Blue Shield, those companies have denied wrongdoing and say they rescind coverage only when necessary.