The proposal by America's Health Insurance Plans (AHIP) may be downloaded at: http://www.consumerwatchdog.org/resources/AHIP.Rescissions.pdf
Consumer Watchdog letter on AB 1945: http://www.consumerwatchdog.org/resources/AB1945OpposeLtr.pdf
Consumer Watchdog raised the following concerns with the De La Torre
-- Without a clear standard for retroactive health insurance cancellations,
AB 1945 would play into the insurers' hands. Under insurers'
conception of the law, even if a patient reported all health conditions
she knew of when applying, but omitted a detail of her record that she
was not aware of, the plan could still later rescind the policy.
-- Even the most independent and well-run review will not return fair and
consistent results if health plans and insurers are allowed to rescind
coverage without a showing of a patient's "willful
misrepresentation" before a rescission is carried out.
-- If companies are required to prove a patient committed fraud before
rescinding, then the problem of wrongful rescissions would be largely
self-regulating. Insurers and health plans would no longer bring
"gotcha" actions against patients who never knew of, failed to
appreciate the significance of, or forget some detail of, a past medical
problem. Hidden List
-- The insurer-favored proposals fail to forbid rescission if omitted
patient information being used as the grounds for cancellation would not
have been grounds for refusing coverage in the first place. Such usually
minor omissions also should not be grounds for defending a rescission.
|SOURCE Consumer Watchdog|
Copyright©2008 PR Newswire.
All rights reserved