‘You can call it a spare bedroom all you want, but it’s still a closet’
SAN FRANCISCO, Feb. 15 LAWFUEL – Law News US, Law Jobs — Blue Shield of Californian responded today to a lawsuit by the California Association of Realtors, issuing the following statement by attorney Steve Madison of Quinn Emanuel Urquhart Oliver & Hedges, LLP.
“Instead of trying to get into compliance with the terms of their
contract, the Realtors Association is trying to intimidate Blue Shield by
filing a frivolous lawsuit and trumpeting it in a press release filled with outrageously over-the-top distortions. But the truth will always win out in the end — no matter how many times you call something a spare bedroom, at the end of the day it’s still a closet. Here are the facts we’re looking forward to presenting in court:
Fact #1: There’s only one way to count — CAR’s lawyers are spinning
novel theories concerning the requirement that 75% of participating members sign up for a Blue Shield plan. But the law and the contract are crystal
clear that the relevant numbers are the number of members signing up with
Blue Shield and the number of members getting any health plan through the
Association. On that basis, CAR is at less than 75% participation with us, and in violation of the contract.
Fact #2: It’s not even ‘he said/she said’ — We know that our numbers
are right, because CAR gave them to us themselves. This action was
triggered by the Association voluntarily informing us last fall that their participation was below 75%, and subsequently providing us with
documentation that confirmed it.
Fact #3: No one is losing their health coverage — Every CAR member who had coverage with Blue Shield should be able to get uninterrupted coverage through CAR, Blue Shield or another health plan guaranteed. In addition to other coverage options provided by CAR, everyone who has had coverage from Blue Shield should be legally entitled to Guaranteed Issue healthcare coverage in two ways: (1) from any California carrier in the small group market if the employer is a small group under California law, or (2) from any carrier in the individual market, including Blue Shield.
The Realtors are trying to sell their story without anyone looking too
closely at the details. But this case just isn’t going to pass a reasonable
CONTACT: David Seldin
Director of Corporate Communications