Realtors Sue Blue Shield

Health coverage is going to be difficult for California Realtors from now on. California based Blue Shield, which used to offer health coverage for about 8,000 realtors and their families, has now decided to terminate its coverage abruptly. All the customers were informed through mails that their coverage would be active only till May 31, 2007. Reacting to the situation, California Association of Realtors has taken up the responsibility of defending its members and has sued Blue Shield.

Blue Shield has cancelled all agreements with its customers. Speaking on this, Colleen Badagliacco, President of California Association of Realtors, said that this was really a tough situation. The families are trying in vain to find a replacement for Blue Shield. She further added that Blue Shield had behaved in the most careless and irresponsible manner by not showing even a hint of sympathy about the health of more than 8000 families. The company is not ready to hold any discussions pertaining to this matter.

David Seldin, spokesperson of Blue Shield, said that the association had violated the agreement. According to the agreement, 75 percent of the association members should be enrolled in the Blue Shield Plan for their health insurance under the group coverage. Blue Shield had intimated the association regarding its decision in December itself and had also given the customers ample time to get a replacement.

But the association does not agree to the charges. According to their lawyer, the enrolled members in the guaranteed issue plan are more than 75 percent. The attorney said that almost 99 percent of the members have joined the plan. Blue Shield, which offers coverage to more than 3 million natives of California, states that under a group plan, 75 percent enrollment is prerequisite in order to preserve the interests of the company and also the individual.

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