Blue Cross Awarded State Insurance Contract
Blue Cross of California said it was awarded a contract to administer a $30-million state program under which health insurance will be offered to Californians who had been denied coverage because they suffer from cancer, heart disease, AIDS and other long-term illnesses.
The program, funded with state tobacco tax revenues, was signed into law in October, 1989. Woodland Hills-based Blue Cross will administer eligibility and enrollment for the program, under which people can choose coverage from one of several insurers, including Blue Cross.
Each insurer will pay customers’ claims from their premiums, and claims that exceed revenues will be paid by the state program, Blue Cross said.
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