Insurers feel backlash over policy cancellations
March 10th, 2008 Posted by: Dr. Dobson
Health plans are facing even more legal, regulatory and legislative challenges to their practice of canceling enrollees’ coverage after approving treatment. In reaction to the mounting pressure, some insurers are changing their rescission policies.
Last month, Health Net became the latest target in California. A state arbitrator on Feb. 21 levied a $9 million award, largely in punitive damages, against the insurer for canceling a breast cancer patient’s policy after authorizing $129,000 in medical care. The plan dropped the woman for supposedly misrepresenting her weight and a heart condition on a pre-enrollment form.
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Tags: Insurers, backlash, policy, cancellations