Los Angeles judge issues restraining order against insurer

AP/San Francisco Chronicle, January 27, 2009

A judge issued a temporary restraining order against Anthem Blue Cross, barring the company from sending a notice to former customers offering them $1,000 to drop all legal claims against the health insurer. The order stems from a class-action lawsuit filed by the Los Angeles city attorney against the health insurer for allegedly dropping coverage to people who file expensive medical claims. Anthem Blue Cross reached a settlement with the state Department of Managed Health Care last July that required the insurer to send out offers of new coverage to about 1,700 people who had their policies canceled. The company also offered former customers $1,000 each if they drop all legal claims.