Regulators aim to curb healthcare rescissions
Lisa Girion
Los Angeles Times
State regulators moved Tuesday to limit insurers' ability to cancel medical coverage after patients get sick, proposing that companies be required to check up on an applicant's health before issuing a policy in the first place.
The Department of Managed Health Care, which governs health plans known as HMOs, and the Department of Insurance, which supervises insurance companies, said they would propose rules that reinforced existing laws forbidding rescissions except when they could show a policyholder was at fault. It marked the first time the two agencies had acted in concert on any regulations.
"We felt that it was extremely important that consumers be protected regardless of the insurance product they had and we wanted to send a very strong message nationally that we regard this practice as one that must be done away with," healthcare agency Director Cindy Ehnes said.
Gov. Arnold Schwarzenegger recently signed into law a bill introduced by Assemblyman Hector De La Torre (D-South Gate) that will require insurers to pay hospitals and physicians for authorized care even if insurers later revoke coverage. The law takes effect in January.
October 24, 2007 at 12:00 AM | Permalink | Blog Reactions
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