October 7, 2009 6:50 AM

California woman denied health insurance for condition she doesn't have

Like a lot of self-employed people, Valerie Scaglione and her husband, Michael, who run two businesses from their home outside Auburn California, find themselves in a significant health insurance crunch. Yet when she tried to switch from the family's expensive individual insurance to a Blue Shield group plan that's more affordable, she said, she and her oldest daughter were denied coverage. She said neither of them has the medical conditions that were listed as reasons for being denied bronchitis and a skin ailment.

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