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LOS ANGELES (AP) - State regulators fined California's largest health insurance provider $1 million for violating state law, saying an investigation found that the company systematically dropped policyholders after they became sick or pregnant, a newspaper reported Friday.
Officials with the Department of Managed Health Care said they hoped the fine would prompt changes at Blue Cross of California. They said they planned to conduct similar investigations into other large health insurance providers in the state, the Los Angeles Times reported.
The department's findings could expose Blue Cross to legal liability in dozens of lawsuits filed by consumers who allege their policies were illegally canceled.
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