EndocrinologyLegislation Protecting Patients From Losing Health Insurance When They Get Sick Clears Senate Policy Committee
Legislation protecting patients from the practice of health insurers and health plans canceling their coverage when they get seriously ill today passed the Senate Judiciary Committee.
Assembly Bill 2, sponsored by the California Medical Association and authored by Assemblymember Hector De La Torre, D-Southgate, is designed to prevent the outrageous industry-wide practice of health plans wrongfully rescinding coverage for patients. The bill, which has already been approved by the Assembly and the Senate Health Committee, moves next to the Senate Appropriations Committee.
Over the last few years, rescissions have become common practice for HMOs and insurers. The reprehensible conduct has produced lawsuits, fines, legal settlements and a congressional investigation - all after the fact. The problem, however, still remains that patients can get their health coverage pulled out from under them just when they need it most, when they are severely sick and their medical bills are mounting.
Rescissions cause immense emotional and financial suffering for those involved, even when it is unjustified. AB 2 takes a proactive approach, continuing insurance coverage until an independent board reviews the matter and makes a decision as to whether it is legal.
"The whole country is talking about health care reform," said Dr. Dev GnanaDev, president of the California Medical Association. "Part of reforming the system must include stopping this insidious practice and ensuring that Californians get health insurance they can count on. We need to prevent health plans and insurers from leaving their patients stranded when they most need coverage. Rescissions only lead to increasing medical costs for the patient, doctor and hospital while the insurer makes a profit."
The measure also raises the legal standard for rescission by stipulating that in order to cancel coverage, the health plan or insurer must have completed medical underwriting for the patient involved and show that the patient willfully misrepresented information. This provision would prevent patients who make innocent mistakes, such as forgetting to include information about long-ago medical conditions, from losing their insurance.
California Medical Association