News Headlines Article

Blue Shield sued over ‘death spiral’ allegation
The Mercury News

A consumer group has sued Blue Shield, accusing the health insurer of using big rate hikes to force older and sicker people into low-benefit and high-deductible plans, a tactic the group calls a “death spiral.” Consumer Watchdog announced the suit Wednesday during a news conference in front of Blue Shield’s corporate headquarters in San Francisco. The group accuses Blue Shield of closing certain policies to new customers, then sharply raising rates for those remaining in the plans.