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Blue Shield wins ruling over rescinded health insurance

Los Angeles Times, May 29, 2009

A judge ruled Thursday in mid-trial that Blue Shield of California had acted properly in canceling the health insurance policy of a former Cypress, CA, resident after he was seriously injured in a car accident. It's the first verdict stemming from the spate of rescissions that have enraged consumer activists and led to regulatory enforcement by the state. The judge made the ruling in response to a motion by Blue Shield that included an agreement it had reached with plaintiffs Steve Hailey and his wife, Cindy. The Haileys stipulated they had lied about his preexisting conditions to obtain coverage. Blue Shield declared the resolution a "complete vindication."