Blue Shield to restore coverage for dropped Californians

Blue Shield has agreed to reissue medical coverage to nearly 700 Californians whose policies were canceled after they got sick and to make changes in the way it handles insurance bought by individuals, officials have announced. Blue Shield of California's Life & Health Insurance Co. also agreed to reimburse consumers whose coverage was canceled for medical expenses they paid out of pocket. In turn, the state dropped its case against Blue Shield and declined to pursue $12.6 million in proposed fines.