After Cancellations, 1,200 Californians Get Health Insurance Back
16 05 08 - 13:13
The health insurance pendulum is swinging back the other way in California.
Insurers in the state have been taking some heat in recent months for canceling policies of individuals who had inaccuracies on their applications. But in a deal yesterday, two big insurers in the state agreed to restore coverage for nearly 1,200 people who had their policies canceled after incurring big medical costs, the Los Angeles Times reports.
The industry says canceling policies when people misrepresent themselves is a key way to prevent fraud and keep prices down. But critics say there are cases where insurers use honest mistakes as an excuse to cancel policies of people who become sick and run-up high health bills.
Kaiser Permanente and Health Net agreed yesterday to let people whose policies have been rescinded since 2004 buy health insurance again, regardless of their current health status. Health Net recently lost a $9 million case against a woman who had to stop chemotherapy when the company canceled her insurance, the LAT notes.
The state’s department of managed care brokered the deal, and is working with PacifiCare (part of UnitedHealth), Anthem Blue Cross and Blue Shield to cut similar deals involving some 4,000 people, the article says.