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Consumer Advocates Call for Governor to Make Good on His Promise to Protect Patients From Illegal Cancellations of Health Insurance
Date:3/27/2008

octor had diagnosed high blood pressure, even though the doctor never informed the patient of the condition.

"This is as far from willful representation as an applicant can get," said Flanagan, "yet insurers saw it as an excuse to cancel the patient's insurance and refuse to pay his doctors."

Governor Schwarzenegger must make good on his own promise to protect patients from such cancellations, said Consumer Watchdog. The hearing was convened by Sen. Sheila Kuehl, chair of the committee, to examine the performance of the Schwarzenegger Administration's Department of Managed Health Care.

Consumer Watchdog sent a letter to Governor Schwarzenegger yesterday calling on him to either confirm or deny rumors that Administration staff had told the Department to "pull back" on new regulations crafted over the last two years to end the practice of illegal retroactive cancellations.

The Governor personally promised to end the so-called health insurance "rescissions" in his State of the State address this January. The letter follows:

LETTER TO GOVERNOR SCHWARZENEGGER

Governor Arnold Schwarzenegger

State Capitol

Sacramento, CA 95814

Dear Governor Schwarzenegger,

We understand that yesterday your political staff informed the Department of Managed Health Care that it should "pull back" new regulations crafted over the last two years to end the practice of illegal retroactive cancellations of health insurance policies.

We ask that you explain your intentions on this matter before the Senate Health Committee oversight investigation tomorrow. If it is true that your staff has ordered the Department to soften its position toward health insurers, such a move is counter to your public promises and those of your regulator to protect patients. The essence of that protection is that a health insurer may rescind coverage only if a patient lied about their health when applying for insurance.


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SOURCE Consumer Watchdog
Copyright©2008 PR Newswire.
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