Daily News Updates - Health Insurance News

CA Rescission Legislation, Pt.2 – Rescissions decisions.

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One of the key rubs is where peoples’ health insurance is proven to have been dropped illegally and unwarranted. The victims who receive the ‘after-the-fact rescission’ now learn they haven’t had health insurance coverage all the while. They quickly become inundated with huge medical bills as a result, but the insurer still doesn’t have to go back and pay what was always legally binding. At least that is the ‘storyline’. In legalese, it’s more complicated, but probably it’s safe to call it ‘more difficult for patients to recover’ the resulting expenses caused by the health insurance cancellation infractions.

This bill., called “AB 1945” is being presented to the California Senate Judiciary Committee today by Assemblyman Hector De La Torre, in who’s name the bill is ‘popularly’ (or ’unpopularly’) labeled. The conflict involves the outsourcing of rescission oversight by state regulators to private companies ‘under financial incentives that favor health insurers’. The ‘justification’ for this decision was to get health insurance lobbyists to withdraw ‘their opposition to the bill’. The Consumer Watchdog advocates want rescission to be limited to only ‘instances where a patient lied about a past medical condition’. They insist that the ‘judges’ be actual regulators and not privately-held 3rd party hires. Their main purpose should be to ‘assist patients prior to the rescission being carried out’. As it stands now, the legislation has been amended to avert that authority to 3rd party reviewers who will naturally favor the health insurance industry. Concerned citizens of California are held in suspense today as the bill moves forward into becoming law. It would do well for the rest of our nation to follow these proceedings, as they forge ‘precedence’ that may, later, prove consequential to the rest of us.

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