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Consumer Watchdog Praises Insurance Commissioner Poizner for Health Insurance 'Rescission' Rules, Pans Schwarzenegger Administration for Failure to Regulate HMOs
Date:6/3/2009

which agency regulates their insurer."

In a letter today to DMHC Director Cindy Ehnes, Consumer Watchdog called on the regulator to immediately revive the stalled rules. In the letter, Consumer Watchdog wrote:

"It has been over two years since the [DMHC] granted Consumer Watchdog's rulemaking petition...However, the Department has yet to issue a final rule and since this proceeding is no longer listed as pending on the Department's website, it appears that the Department has ceased the rulemaking proceeding altogether.

"Rescission continues to be the most pernicious of the health plan industry's practices, leaving innocent patients uninsured after they get sick and need coverage the most...It is very important that the Department revive this rulemaking now as the Department of Insurance announces its own rulemaking today. Ideally, both agencies will work together to establish a coherent regulatory approach that is protective of patients."

Download the letter to the DMHC here:http://www.ConsumerWatchdog.org/resources/RescissionRegStatus.pdfhttp://www.consumerwatchdog.org/resources/Exhibits.pdf

Download the attachments to the letter here: http://www.ConsumerWatchdog.org/resources/Exhibits.pdf

Consumer Watchdog petitioned for the overdue DMHC regulations on November 13, 2006. The DMHC granted the petition and acknowledged it was pursuing regulations on December 13, 2006. Under the state's Administrative Procedures Act, regulations are usually enacted within nine months of their announcement.


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SOURCE Consumer Watchdog
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