Pending Legislation to Prevent Insurance Companies from Dropping Coverage

The Washington Post (9/8, Vick) reports, “Rescission — the technical term for canceling coverage on grounds that the company was misled — is often considered among the most offensive practices in an insurance industry that already suffers from a distinct lack of popularity among the American public. Tales of cancellations have fueled outrage among regulators, analysts, doctors and, not least, plaintiffs’ lawyers, who describe insurers as too eager to shed patients to widen profits.” According to the Post, “Those sentiments have become central to the healthcare debate. … Each of the bills pending in Congress would prevent insurers from rejecting clients because of preexisting conditions.”