Thousands in California whose policies were canceled to be offered new coverage

About 3,400 Californians whose health insurance was canceled by Kaiser, Health Net, and PacifiCare will soon receive notification that they may be eligible for new coverage and for compensation for medical bills they paid while they were uninsured. In a deal with state regulators, the insurers agreed to offer former members new coverage regardless of preexisting medical conditions and to reimburse them for medical expenses. In exchange, the state Department of Managed Health Care will close investigations into the companies' rescission practices.