Source: David Lazarus, Los Angeles Times ( Free Registration )

Altadena resident Mike Freas was twice rejected for health coverage by Anthem Blue Cross because of a preexisting condition, forcing him into a costly state-run program intended to serve as the insurer of last resort for people turned away by the private sector.

Yet now he finds himself in the strange position of sending Anthem a check for about $500 each month. Why? Because it turns out that Anthem Blue Cross also quietly serves as the administrator of the state insurance plan.

Read Full Article: Health insurer profits even when denying coverage