California Insurance Commissioner Rips Blue Shield's 90-Day Notice For Individual Policyholders

SACRAMENTO (CBS13) — The California insurance commissioner is cracking down on Blue Shield after the company mailed 90-day notices to 115,000 customers cancelling their coverage.

Dave Jones says Blue Shield of California didn't play fair with individual policyholders, giving them until Dec. 31 to find new coverage.

"A 90-day notice is insufficient," Jones said. "They have to send a 180-day notice to their customers."

Jones says out of 13 insurance companies in California, Blue Shield was the only healthcare provider to give the short notice, and he threatened to sue.

"Blue Shield initially refused to comply with this law, so I notified them that I would file a court action to comply," Jones said.

Those who want to take advantage of the extension will need to notify Blue Shield by Dec. 6.

The company plans to send notices to policyholders tomorrow informing them they can extend their policies through March 31, 2014.