One Immediate Benefit From Health Care Reform

Posted by | May 2, 2010 22:15 | Filed under: Top Stories

Insurance companies are stopping the practice of rescission, where they cancel a policy when someone gets sick. Now that the spotlight is on, insurance companies don’t want publicity for their most heinous practice.

An investigative report by Reuters said that one of the nation’s biggest insurers, WellPoint, was targeting women with breast cancer for fraud investigations that could lead to rescissions.

Although WellPoint fiercely denied singling out breast cancer patients for scrutiny, it acknowledged using computer algorithms to search for a range of conditions that applicants would likely have known about at the time they applied. That seemed like a backhanded admission that it was indeed searching for excuses — the company would say legitimate reasons — to cancel coverage. The Obama administration and Congressional Democrats urged insurers to end rescissions at once.

Insurance companies and trade associations are now rushing to announce an end to this practice.

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Copyright 2010 Liberaland
By: Alan

Alan Colmes is the publisher of Liberaland.

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