The California Association of Realtors has filed a suit against Blue Shield of California to stop the insurer from canceling coverage for more than 8,000 association members. The group said that it received notice from Blue Shield in December that the insurer planned to cancel HMO and preferred provider plans offered through CAR. In a statement, association President Colleen Badagliacco said they were told CAR did not meet Blue Shield’s underwriting guidelines. “We were abruptly notified by mail that our insurance coverage was being canceled,” she said, in a statement released Monday. “Families are scrambling unsuccessfully to find replacement coverage by May 31.” Blue Shield said the notice was sent because the number of members signed up for coverage had fallen below the number required under the contract. The lawsuit was filed in Los Angeles Superior Court Feb. 9 after failed negotiations between the trade group and San Francisco-based Blue Shield.
