Insurance Companies Cancelling Health Insurance of Sick Patients

Along with President Obama’s speech to Congress yesterday evening outlining the details involving his overhaul of healthcare in the us, one interesting point popped up - the point that Obama would guarantee that insurers couldn't reject people because involving preexisting conditions. Health insurance companies usually are increasingly citing the failure to reveal preexisting conditions as a method to cancel policies and deny benefits to people wanting care. The term for this is "Post Claims Underwriting". This implies that the insurance companies will not likely investigate someone for confirmation of entitlement to coverage until after they are sick and have to have the insurance. Of study course, if they then determine anybody is sick but not necessarily qualified they cancel the coverage and also the sick consumer is left without having insurance.

Insurance companies are with all the term "rescission" to refer to the cancellation of insurance coverage due to a company being misled. Rather than trying to mislead businesses, omissions of preexisting conditions look like honest mistakes by folks filing out increasingly sophisticated forms. There have been countless stories about how exactly people have enrolled in health insurance, only to possess their policies later cancelled whenever they need care. No one knows just how often policies are cancelled as a result of variety of different talk about laws and policies in position, however, the practice is becoming rampant enough to bring about numerous lawsuits and new regulations place in by states throughout the country.

In the past year and a half, California has fined your five largest insurers in its state almost $19 million for cancelling the policies of folks who became sick. One insurance company perhaps admitted offering bonuses to employees who had the ability to find reasons to cancel plans. President Obama has been attempting to gain support for his healthcare overhaul in part tapping into consumer dissatisfaction using the insurance industry, an industry that's never been popular among the American people. His policy for healthcare overhaul includes restricting insurance companies from screening for preexisting problems, however, this still may well not save people from obtaining their policies cancelled. Along with new regulations, insurance companies may well not necessarily cancel the policies of those individuals with undisclosed preexisting problems, however, a company might initiate further preauthorization requirements on services for many patients, which might dissuade such patients from restoring their policies. Lawsuits carry on being instituted against insurance companies that have cancelled policies. Rather in comparison with fight fraud, rescission has devolved into a backdoor route for insurance companies to stop paying the medical bills of individuals in their time involving greatest need.