Kavruck v Blue Cross of California
Blue Cross of CA Policyholders Allege Company Made Unfair Changes to Policies
A class action has been filed against Blue Cross of California on behalf of policyholders who allege that the insurer wrongfully changed their healthcare policies' premium basis from their age at initial enrollment to their attained ages at renewal time, in violation of the terms of the policies. The action seeks unspecified compensatory damages.
Deborah Kavruck allegedly bought a Blue Cross individual health insurance policy with premiums that were rated based on her initial enrollment age in 1984. Three years later, the action alleges that Blue Cross stopped marketing the entry age policies, even though existing policies remained in effect. Then, in 1994, the health care plan allegedly transferred her and other subscribers' entry-age policies into new policies in which the premiums were calculated based on the subscriber's actual age at the time of renewal. This allegedly caused a rise in Ms. Kavruck's premiums.
The action has been certified on the claims of breach of contract and breach of the implied covenant of good faith. The class is made up of subscribers whose health insurance policies were changed so that their premiums were no longer based on their initial enrollment age but on their attained age at the time of renewal.
