Health insurers insist on right to revoke coverage
After all, if they didn’t drop people with serious illnesses, their profits would be impacted. We MUST have a government option. The story by Lisa Girion in the LA Times:
Executives of three of the nation’s largest health insurers told federal lawmakers in Washington on Tuesday that they would continue canceling medical coverage for some sick policyholders, despite withering criticism from Republican and Democratic members of Congress who decried the practice as unfair and abusive.
The hearing on the controversial action known as rescission, which has left thousands of Americans burdened with costly medical bills despite paying insurance premiums, began a day after President Obama outlined his proposals for revamping the nation’s healthcare system.
An investigation by the House Subcommittee on Oversight and Investigations showed that health insurers WellPoint Inc., UnitedHealth Group and Assurant Inc. canceled the coverage of more than 20,000 people, allowing the companies to avoid paying more than $300 million in medical claims over a five-year period.
It also found that policyholders with breast cancer, lymphoma and more than 1,000 other conditions were targeted for rescission and that employees were praised in performance reviews for terminating the policies of customers with expensive illnesses.
No one can defend, and I certainly cannot defend, the practice of canceling coverage after the fact,” said Rep. Michael C. Burgess (R-Tex.), a member of the committee. “There is no acceptable minimum to denying coverage after the fact.”
The executives — Richard A. Collins, chief executive of UnitedHealth’s Golden Rule Insurance Co.; Don Hamm, chief executive of Assurant Health and Brian Sassi, president of consumer business for WellPoint Inc., parent of Blue Cross of California — were courteous and matter-of-fact in their testimony.
But they would not commit to limiting rescissions to only policyholders who intentionally lie or commit fraud to obtain coverage, a refusal that met with dismay from legislators on both sides of the political aisle.
Experts said it could undermine the industry’s efforts to influence healthcare-overhaul plans working their way toward the White House.
“Talk about tone deaf,” said Robert Laszewski, a former health insurance executive who now counsels companies as a consultant.
Democratic strategist Paul Begala said the hearing could hurt the industry’s efforts to position itself in the debate.
“The industry has tried very hard in this current effort not to be the bad guy, not to wear the black hat,” Begala said. “The trouble is all that hard work and goodwill is at risk if in fact they are pursuing” such practices.
Rescission was largely hidden until three years ago, when The Times launched a series of stories disclosing that insurers routinely canceled the medical coverage of individual policyholders who required expensive medical care…
Continue reading. Read the whole things—there’s much more. From later in the article:
The committee’s investigation found that WellPoint’s Blue Cross targeted individuals with more than 1,400 conditions, including breast cancer, lymphoma, pregnancy and high blood pressure. And the committee obtained documents that showed Blue Cross supervisors praised employees in performance reviews for rescinding policies.
One employee, for instance, received a perfect 5 for “exceptional performance” on an evaluation that noted the employee’s role in dropping thousands of policyholders and avoiding nearly $10 million worth of medical care.
