Insurance giant WellPoint Inc. has agreed to pay $6 million to resolve allegations that the company improperly dropped policyholders after they got sick and needed treatment.
The settlement announced Thursday by Los Angeles City Atty. Carmen Trutanich caps a long-running investigation into so-called rescissions by several insurers in the state.
"Patients with health insurance have a right to expect meaningful coverage when they need it most -- when they are ill and in need of medical treatment," Trutanich said.
Starting in 2006, a series of Times articles, regulatory investigations and lawsuits showed that insurers rescinded coverage for some consumers with expensive medical needs without regard for whether they intended to deceive companies about preexisting medical conditions on their applications.