CHARLOTTE, N.C. — Blue Cross and Blue Shield, the state’s biggest health insurer, has canceled family insurance policies it sold last month to gay and lesbian couples in North Carolina under the Affordable Care Act, the Charlotte News Observer reports.
The insurer canceled policies of 20 couples — some who were legally married in states that recognize gay marriage — and encouraged them to reapply for separate insurance policies as unmarried individuals. The couples received calls from Blue Cross in mid-January, several weeks after they purchased their family health insurance, and were told their family coverage was invalid, the article said.
Blue Cross’ strategy has stung same-sex couples and gay-rights advocates because the nonprofit insurer offers domestic partner benefits to its own employees. Blue Cross insurance plans offered by large companies in North Carolina also include health benefits for employees and their same-sex partner, the News Observer said.
The problem is traced to terminology in Blue Cross policies that define “spouse” as “opposite sex.” North Carolina insurance law does not prohibit selling coverage to gay couples, but Blue Cross was legally bound by the restrictive contract language in its individual plans, said Kerry Hall, spokeswoman for the N.C. Department of Insurance.
Blue Cross has vowed to update the language in 2015.