California to Review Rescission of Coverage

April 18, 2008

The practice of rescission of coverage just when an insured needs it most has been in the news for quite some time and has been practiced for even longer. It is good to see that California is taking steps to double check the decisions made in this regard. There should be a nationwide policy that each rescission of coverage be reviewed and approved by an elected body.

State to review canceled health insurance policies

Thousands of people whose policies were canceled by California health insurers will have a chance to win back their coverage and be reimbursed for outstanding medical bills, the Schwarzenegger administration announced Thursday.

The state’s action is the boldest yet in dealing with the industry’s increasingly controversial practice of canceling individual coverage — known as rescission — after patients have taken ill and submitted medical bills.

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