Insurance Cancellation Questions Could Spread Beyond California

Today’s Health Blog jargon of the day is rescission, the insurance industry’s practice of revoking individual insurance policies because of health-related mistakes or omissions on the application for coverage. …

… Now it looks like the push-back against rescission may be spreading. Henry Waxman, a Democratic California Congressman, held a hearing on the subject yesterday and said his oversight committee plans to investigate the issue nationally.  Read more 

WellPoint Agrees To Pay $11.8M to California Hospitals Over Health Insurance Policy Cancellations  Read more 

Via the indispensable Avedon Carol: Rich, powerful corporations can break the law

California regulators admitted Thursday that for more than a year they didn’t even try to enforce a million-dollar fine against health insurer Anthem Blue Cross because they knew they would be outgunned in court.

In early 2007, the Department of Managed Health Care pledged to fine the state’s largest insurer for “routinely rescinding health insurance policies in violation of state law.”

But it never did.

That is a real good reason to not do business with Anthem Blue Cross.