Daily News Updates - Health Insurance News

CA Rescission Legislation, Pt.4 – ‘Flesh’ from ‘fine-print clauses’

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It should be no secret that the ‘flesh’ that covers the skeleton of justice is painted in with those ‘fine-print clauses’. The fine-print clauses determine the final result. So if the title is ‘Health Insurance Reform”, that does not connotate any common sense meaning. It’s effective meaning is found in the fine-print clauses. The person writing the contract usually prevails. This, of course is the ‘key’ in a nutshell, as these precarious Californians well-understand – now. The health insurance reform bill on the table now is loaded with complex proposals, believed to favor the health insurance industry ‘in legal proceedings’.

Consumer Watchdog spokesperson, Jerry Flanagan explains, "Insurers are lobbying hard in the Legislature and at regulatory agencies for a 'get out jail free' card” by appointing judges and juries that are really third-party agents under financial obligation. They are granted autonomy ‘over rescission reviews’. Conversely, what is urgently needed is protection for the hapless, extreme victims ‘who've lost their health, their credit ratings, even their homes after illegal cancellations’ of their pre-required health insurance coverage. What Consumer Watchdog advocates is ‘tough new rules and criminal prosecutions’ for health insurance industry leaders who would “[cut] loose anyone who dares to get sick,” for the purpose of ‘boosting profits’.

Their great frustration is that the problem is being bolstered. Instead of leveling the playing field, the health insurance industry is receiving even more “industry-friendly legislation and capitulation by regulators.” The victims get lip service for illegal rescission damages and “foist[ed] big legal burdens.”

Continued…