Blue Shield of California sues CenCal Health

San Francisco-based Blue Shield of California filed a lawsuit against Santa Barbara, Calif.-based CenCal Health arguing the Medi-Cal plan avoided paying claims by signing up around 40 of its ill policyholders to Blue Shield's individual health plans.

Blue Shield alleged CenCal Health avoided $12 million in care claims over the last 18 months by shifting its cost to Blue Shield and paying members' premiums. The lawsuit also claims Medi-Cal continued to receive state payments for these members. 

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