California Association of Realtors sues Blue Shield

The California Association of Realtors is suing Blue Shield of California, claiming the health insurance provider canceled its members’ coverage without proper cause. The lawsuit, filed in Los Angeles Superior Court, stems from a dispute that arose in December, when Blue Shield sent the association a letter notifying that it would not renew coverage for about 5,500 realtors and their families – about 8,000 people – after the association’s current contract with the health insurer expires May 31. Blue Shield’s reason for this action was because the number of members signed up for coverage had fallen below a set threshold required under their contract with the association. The association also filed an injunction seeking to stop Blue Shield from dropping coverage for its members. A hearing on the matter is scheduled for next month.