The California Association of Realtors has filed a lawsuit against Blue Shield of California to prevent cancellation of medical insurance affecting more than 8,000 members and their families. The state’s large trade organization also filed for a preliminary injunction “due to the irreparable harm” Blue Shieldís actions have caused.
ìWe were abruptly notified–by mail–that our insurance coverage was being canceled,î said C.A.R. President Colleen Badagliacco. ìFamilies are scrambling unsuccessfully to find replacement coverage by May 31. Many have operations scheduled, others are recovering from surgeries and require continued medical care or additional therapy. Some are dying and are in need of palliative care during their last days. Blue Shield is denying them all, just when they need medical care the most.î
Under state law, group medical coverage is guaranteed as long as C.A.R. continues to meet legally stipulated guidelines, as it has done with policies underwritten by Blue Shield since 1999, Badagliacco explained.
ìBlue Shield is notÝallowing us the opportunity to try and resolve this issue,” she said. “Blue Shield has shown a callous disregard for the more than 8,000 people who will be stranded without medical coverage and has refused to engage in any meaningful discussions with C.A.R. or RealCare, our insurance broker.î
She added: ìWe strongly believe that Blue Shield terminated medical insurance coverage without cause. We are committed to doing everything possible for our members and intend to explore every legal option available so that our members and their families have access to the medical care they rightfully deserve. We expect to prevail with the litigation.
ìBlue Shield of Californiaís annual revenue tops $7.5 billion. If Blue Shield can arbitrarily cancel medical coverage for more than 8,000 Californians simply by writing a letter, every one of Blue Shieldsí 3.3 million customers across the state should be concerned.î
Registered in California real estate for more than 100 years, the California Association of Realtors is one of the largest state trade organizations in the U.S. with nearly 200,000 members. The organization is headquartered in Los Angeles.
