The State - News from Nov. 10, 1986

A health maintenance organization was charged by the National Gay Rights Advocates with “systematic consumer fraud” and “red-lining” for allegedly rejecting San Francisco applicants as members of a high-risk AIDS group. The complaint filed with the California Department of Corporations contended that HealthAmerica began rejecting San Francisco applicants last December and continued the policy until several weeks ago when it stopped accepting individual applicants altogether in favor of group health plan subscribers. HealthAmerica officials denied the allegations and said the charges originated with a “disgruntled employee.”