http://www.latimes.com/business/la-fi-rescind17-2009jun17,0,3508020,full.storyFrom the Los Angeles Times
HEALTHCARE: ROADS TO REFORMHealth insurers refuse to limit rescission of coverage
Lawmakers ask three executives if they'll stop dropping customers except where they can show "intentional fraud." All say no.By Lisa Girion
June 17, 2009
Executives of three of the nation's largest health insurers told federal lawmakers in Washington on Tuesday that they would continue canceling medical coverage for some sick policyholders, despite withering criticism from Republican and Democratic members of Congress who decried the practice as unfair and abusive.
The hearing on the controversial action known as rescission, which has left thousands of Americans burdened with costly medical bills despite paying insurance premiums, began a day after President Obama outlined his proposals for revamping the nation's healthcare system.
An investigation by the House Subcommittee on Oversight and Investigations showed that health insurers WellPoint Inc., UnitedHealth Group and Assurant Inc. canceled the coverage of more than 20,000 people, allowing the companies to avoid paying more than $300 million in medical claims over a five-year period.It also found that policyholders with breast cancer, lymphoma and more than 1,000 other conditions were targeted for rescission
and that employees were praised in performance reviews for terminating the policies of customers with expensive illnesses........
A Texas nurse said she lost her coverage, after she was diagnosed with aggressive breast cancer,
for failing to disclose a visit to a dermatologist for acne.The sister of an Illinois man who died of lymphoma said his policy was rescinded for the failure to report a possible aneurysm and gallstones that
his physician noted in his chart but did not discuss with him.
The committee's investigation found that WellPoint's Blue Cross targeted individuals with more than 1,400 conditions, including breast cancer, lymphoma, pregnancy and high blood pressure.
And the committee obtained documents that showed Blue Cross supervisors praised employees in performance reviews for rescinding policies........
Late in the hearing, Stupak, the committee chairman, put the executives on the spot.
Stupak asked each of them whether he would at least commit his company to immediately stop rescissions except where they could show "intentional fraud."
The answer from all three executives:
"No."
