A CLASS ACTION LAWSUIT FILED AGAINST THE BLUE SHIELD STATES THAT THE INSURANCE COMPANY IS TELLING CUSTOMERS TO EITHER PAY A HIGHER PREMIUM, OR SWITCH TO A LESSER POLICY. THE NONPROFIT GROUP CONSUMER WATCHDOG FILED THE LAWSUIT, SAYING THE BLUE SHIELD IS USING WHAT IS CALLED A “DEATH SPIRAL” IN THE INSURANCE INDUSTRY, TO PURGE THE CUSTOMERS WHO FILE THE MOST CLAIMS. THE SUIT STATES THE CAUSE IS THE FEDERAL HEALTH REFORM ACT THAT TAKES EFFECT IN 2014. BLUE SHIELD DENIES THE ALLEGATIONS, CLAIMING THAT THEY ARE IN COMPLIANCE WITH CALIFORNIA LAW.
