Blue Shield fends off injunction in Realtor health care case

The California Association of Realtors this week announced that a Los Angeles Superior Court judge has denied a preliminary injunction that sought to prevent Blue Shield of California from canceling medical insurance coverage for about 8,000 association members and their families. The statewide Realtor trade group announced in February that it was suing health insurance company Blue Shield over the canceled coverage (see earlier Inman News article).

"Our members have no choice but to secure other coverage -- if they can find it -- as soon as possible in light of today’s decision," CAR President Colleen Badagliacco said in a statement. "We intend to explore every legal and legislative remedy available so that our members and their families have access to the medical care they rightfully deserve. We continue to believe that Blue Shield terminated medical insurance coverage without cause."

A Blue Shield spokesman told Inman News that the cancellation was a result of a breached contract. The association "failed to comply with the terms of the contract, specifically a very important provision requiring that (the association) have 75 percent of their participating members taking Blue Shield Insurance. From our standpoint it was a very cut-and-dry issue."

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