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Physicians Join Hooper, Lundy & Bookman Class Action Complaint Challenging Blue Cross Rescission Policy

Physicians Join Hooper, Lundy & Bookman Class Action Complaint Challenging Blue Cross Rescission Policy

Published 12-27-06

Submitted by Hooper, Lundy & Bookman, Inc.

LOS ANGELES--(BUSINESS WIRE)--Dec. 27, 2006--The national health law firm of Hooper, Lundy & Bookman, Inc. today filed a motion to intervene, requesting that the California Medical Association, on behalf of its more than 30,000 physician members, be permitted to join the class action the firm filed on behalf of California hospitals earlier this year against Blue Cross of California, Blue Cross Life and Health, and their parent company, Wellpoint, Inc.

The Complaint in Intervention seeks to protect physicians and their patients from Blue Cross' illegal practice of retroactively rescinding insurance policy coverage for patients after the health care services have been provided by the physicians. The complaint explains that California law prohibits Blue Cross from retroactively denying payment after the services have been provided in good faith. The class action and complaint to intervene follow lawsuits that were filed by Hooper, Lundy & Bookman in May of this year, on behalf of hospitals challenging these types of retroactive policy rescissions.

"Blue Cross' tactics have been to divide and conquer," said Daron Tooch, one of the lead attorneys in the case. "We believe that health care providers and their patients have the same interests in this matter, and that ultimate resolution of the issues involving Blue Cross' retroactive rescission of patient policies needs to be achieved at the same time and in the same forum."

Blue Cross has been the subject of dozens of lawsuits by patients alleging that Blue Cross routinely looks for after-the-fact reasons to cancel policies by reviewing previously approved applications. The rescissions, however, directly impact the hospitals and physicians, because they are not being paid for their services, and instead are
being directed by Blue Cross to collect from the patients.

"The entire health care system is strained when insurers do not pay valid claims based on improper rescissions," said Glenn Solomon, who filed the complaint with Mr. Tooch. "Patients suffer and providers are weakened. Plus, it pushes more people onto the roles of the uninsured, which strains limited public resources."

About Hooper, Lundy & Bookman, Inc.: Hooper, Lundy & Bookman's litigation lawyers are regularly engaged in complex litigation involving hospitals and health systems, as well as other health care providers. The firm's litigation department regularly assists provider clients with litigation, arbitration and mediation services that have resulted in numerous favorable judgments and new case law. With clients in 47 states and offices in Los Angeles, San Francisco and San Diego, the firm is the largest law firm in the country dedicated solely to the representation of health care providers. For more information, visit the firm's website at www.health-law.com.

Copyright Business Wire 2006

Hooper, Lundy & Bookman, Inc.

Hooper, Lundy & Bookman, Inc.

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