In Pur(suit) of Health Care

Los Angeles City Attorney Rocky Delgadillo is tackling California's Anthem Blue Cross with a $1 billion lawsuit after Anthem Blue Cross, its sister company WellPoint, Inc., and another company revoked the health policies of over 6,000 policyholders. The suit claims that Anthem Blue Cross rescinded individual and shared policies after policyholders filed expensive medical bills.

Although insurance companies are allowed to protect themselves from policyholders that fail to disclose their medical history, California Anthem researched their policyholders' health history only after a medical condition arose. In the case of 61-year-old Jennifer Thompson, Thompson failed to disclose that she had breast cancer 11 years before--although the insurance form only asked for a ten year medical history. Thus for Thompson and many like her, Anthem withdrew their policyholders' health insurance when they discovered a previous undisclosed condition. The loss of health insurance has forced many individuals to pay their medical bills from the beginning of the date of the policy agreement.

However, where the private companies fail, the state succeeds. Cindy Ehnes, the director of the Department of Managed Health Care of California, is to reinstate the health care coverage of those policyholders who lost their Blue Cross insurance.

Trying to deal with its overwhelming health care crisis, California Governor Arnold Schwarzenegger attempted to pass sweeping health care reform in late January 2008. However, the California Senate rejected the legislative attempt, citing that California's $14.5 billion deficit could not afford another expensive initiative.

Although both Democrats and Republicans turned down the Governor's health care reform, it's ironic that no decisive health care reform legislation or public initiative has successfully navigated its way to the Governor's desk. In a state still very independent-minded that recounted its Democratic governor, no one has been able to compromise a solution. Despite the fact that California is a large pluralist state that represents many interested parties, health care reform seems trapped in limbo.

Unlike the federal government, in which executive power has greatly expanded, executive power within the states is still stilted. Governor Schwarzenegger can position his people to push these legislative changes; but until he can bargain and convince legislators to vote his way, he'll still have a $14.5 billion dollar deficit and millions of uninsured Californians.