Blue Cross News
Consumer Watchdog Applauds L.A. City Attorney's Efforts to Reinstate Cancelled Blue Cross Patients; Urges State HMO Regulator to Do Same
The practice — known as "rescission" — has affected at least hundreds of patients who have been left uninsured, uninsurable, and facing up to hundreds of thousands of dollars in medical debt when their polices were retroactively cancelled by their health insurance company.
On Monday, Consumer Watchdog sent a letter to Department of Managed Health Care (DMHC) Director
In the letter sent yesterday, Consumer Watchdog wrote:
"Rescission of a health plan contract is extremely detrimental to the patient. Not only is the rescinded patient left uninsured and often hundreds of thousands of dollars in medical debt, but is also virtually uninsurable in the individual market. Particularly harmful is the fact that a patient rescinded under an allegation of fraud is barred from enrolling in high-risk coverage through the [state of
Consumer Watchdog said that reinstatement must be retroactive to the time of cancellation and health insurers must be liable for all health expenses from the date of issuing the contract through the date of reinstatement.
Consumer Watchdog petitioned the DMHC 18 months ago to adopt new regulations to rescission and to require health plans to reinstate cancelled patient. To date, the DMHC has reinstated only one Kaiser patient.
For more information on health insurance rescission go to: http://www.consumerwatchdog.org/search/?searchQuery=rescission&topicId=&search=Go+%BB
Visit us on the web at www.ConsumerWatchdog.org
SOURCE Consumer Watchdog
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