Navigation Links
Insurance Cancellation Settlements Not Enough to Protect CA Patients
Date:9/12/2008

Schwarzenegger Must Keep His 'State of the State' Promise to Protect All Californians By Signing Legislation

LOS ANGELES, Sept. 12 /PRNewswire-USNewswire/ -- New legislation awaiting Governor Schwarzenegger's signature -- not settlements between health insurers and state regulators -- is needed to protect Californians from future cancellations of coverage when they get sick and need coverage the most, said Consumer Watchdog.

Today's settlement between the California Department of Insurance and Health Net over retroactive cancellation -- rescission -- of health insurance policies comes in the wake of four similar settlements reached by the Department of Managed Health Care and state HMOs. The settlements help people whose coverage was previously canceled but do not sufficiently protect current and future policyholders.

According to the Department of Insurance, "Health Net agreed to make significant changes to its application form, underwriting process, agent training, and . . . has agreed to establish an independent, third-party review process for future rescission decisions."

Consumer Watchdog said that though the settlement's offer of new coverage to canceled patients was good news, the essential missing element is a clarification of the legal standard for rescissions -- intentional misrepresentation, not an innocent omission.

"Nowhere in any of these settlements does it say that insurers must prove a patient intentionally misrepresented a past health condition before rescinding coverage. Independent review of an insurer's decision to cancel care will not help patients if the rule the reviewers follow is that innocent patients can be canceled. Independent review without a clear legal standard will lead to unfair and inconsistent results. It is particularly concerning that Health Net has 'admitted no wrongdoing' in the settlement and reserves the right to rescind coverage in the future. We need new law to clarify that canceling innocent patients is wrong," said Jerry Flanagan of Consumer Watchdog.

Read a letter Consumer Watchdog sent to Governor Schwarzenegger yesterday explaining why such settlements are insufficient to protect against future cancellations: http://www.ConsumerWatchdog.org/resources/GovernorLetterOnAB1945.pdf

"In his State of the State address Governor Schwarzenegger promised that he would take action so that these devastating cancellations would 'not happen to any other Californian.' To keep that promise Governor Schwarzenegger must sign AB 1945," said Jerry Flanagan.

Watch an excerpt of this year's State of the State address in which Governor Schwarzenegger promised to protect Californians from retroactive insurance cancellations on You Tube: http://www.youtube.com/watch?v=FULW3aNsS4Y

Assembly Bill 1945 by Assemblyman Hector De La Torre (D-South Gate), which passed the legislature with bipartisan support, comes in response to widespread news coverage of insurers violating state law by using innocent omissions on an insurance application to cancel coverage after a patient falls ill.

The key element of Assembly Bill 1945 states that a patient's health coverage cannot be rescinded unless the patient intentionally misrepresented or intentionally omitted health information on his or her application for coverage. Health insurance companies strongly opposed the legislation.

Rescinding innocent patients helps insurance companies protect their profit margins by waiting until a patient files a claim to get rid of policyholders who might actually cost them money.


'/>"/>
SOURCE Consumer Watchdog
Copyright©2008 PR Newswire.
All rights reserved

Related medicine news :

1. New IRC Study Documents Role of Chiropractors in Minnesotas No-Fault Auto Insurance System
2. Clements International Develops Insurance for Medical Tourism Industry
3. Anthem Blue Cross and Blue Shield Staff to Participate in WTMJ-TV Health Insurance Phone Bank
4. Council on Education in Management Announces Insurance Commissioner Steve Poizner Will Present Keynote Address at the 6th Annual California Workers' Comp Forum
5. Senator George Mitchell and the Bipartisan Policy Center to Host Forum Examining Health Insurance Reform
6. Health Insurance Industry Hosts Roundtable Discussion on Health Care Reform in Albuquerque
7. Quotebroker Expands Territory by Offering Affordable Health Insurance Quotes to Arizona Residents
8. Demystifying Medicare and Long Term Care Insurance - Healthcare Liaison Workshop 9/20 Shows Consumers How to Make Choices
9. LIFE Foundation Announces 2008 realLIFEstories Award Recipients to Illustrate Benefits of Life and Disability Insurance
10. ConsecoLifeOptions Launched by Conseco Insurance Company as New Universal Life Product
11. The Health Insurance Advocate Radio Show Expands to Springfield, Missouri, and Reaches a New All-Time Ratings High for Female Listenership
Post Your Comments:
*Name:
*Comment:
*Email:
(Date:2/5/2016)... York, New York (PRWEB) , ... February 05, 2016 , ... ... life? The answer may be at the tips of your toes. Foot massage, whether ... as well as pure comfort and relaxation. The American Board of Multiple Specialties ...
(Date:2/5/2016)... ... February 05, 2016 , ... ... franchises from across the country gathered at the La Valencia Hotel in San ... PROSHRED Chicago was named the year’s most outstanding franchise, walking away with ...
(Date:2/5/2016)... ... 05, 2016 , ... Pivot Point Consulting, a leading national ... & Services for HIT Implementation Support & Staffing report with an outstanding score ... by healthcare executives, managers and clinicians representing over 4,500 hospitals and 2,500 clinics. ...
(Date:2/5/2016)... (PRWEB) , ... February 05, 2016 , ... Colorize ... from on one drop zone to the next using Colorize's dynamic moving camera. Colorize ... project. This package includes a 3D slideshow environment with 1 to 5 focus points ...
(Date:2/5/2016)... ... 05, 2016 , ... Calls Blacklist has just been updated by mobile app ... the developer has fixed known bugs within the app. Calls Blacklist allows its users ... not consuming any of their device’s battery power or memory. It provides a powerful ...
Breaking Medicine News(10 mins):
(Date:2/4/2016)... Feb. 4, 2016  SciClone Pharmaceuticals, Inc. (NASDAQ: ... has entered into a settlement agreement with the ... resolving the SEC,s investigation into possible violations of ... terms of the settlement agreement, SciClone has agreed ... disgorgement, pre-judgment interest and a penalty.  This payment ...
(Date:2/4/2016)... -- Global Immunology Market to 2022 - Large ... growth Summary Immune-mediated inflammatory diseases are ... affect 5–7% of western populations. Although they are ... key patient demographics, they are pathophysiologically linked, being ... inappropriate immune response. Generally, disease-modifying anti-rheumatic drugs, a ...
(Date:2/4/2016)...  Aethlon Medical, Inc. (Nasdaq: AEMD ), ... treat life-threatening diseases, today announced results for the ... 2015. --> --> ... our last quarterly call, we strategically advanced pre-clinical ... to establish the Aethlon Hemopurifier® as a leading ...
Breaking Medicine Technology: