Hlth Insurers Fined M for Dumping Policyholders | Arthritis Information
HEALTH INSURERS TO PAY STATE REGULATORS
By Shaya Tayefe Mohajer
Associated Press
Article Launched: 07/17/2008 06:38:09 PM PDT
LOS ANGELES — Two of California's biggest health insurers agreed Thursday to collectively pay million and reinstate more than 2,000 insurance policies to settle claims with the state that they illegally dropped policyholders from coverage.
Anthem Blue Cross will pay million and reinstate coverage for 1,770 enrollees while Blue Shield of California will pay million and reinstate coverage for 450 enrollees. Both insurers will also reimburse policyholders.
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Joie2008-07-17 23:35:19I think this is a fine example of 'cherry picking' for maximum profits. This should scare the bejesus out of anybody with a chronic illness!
Pip
Pip,
We all should be concerned. These thousands of policyholders that were illegally dropped didn't have chronic conditions or pre existing conditions, they became sick or injured after they had been approved for coverage, and once they filed claims, the insurers "found a reason" to drop them. This insurance industry practice is called rescission. Not only does the dropped policyholder no longer have coverage. but coverage is treated as if it had never been approved and leaving the policy holder liable for all medical bills paid by the plan dating back to the start of the policy.
In California, the five largest health plans have been fined for these iillegal actions: Anthem Blue Cross, Blue Shield of California, Kaiser, PacifiCare and Health Net. Other states and Congress are are also investigating this practice.
What is disturbing is that those having individual health plans were targeted, not policyholders of group plans. With McCain's health proposal to move people into the individual health insurance market, will one have health coverage when you need it?
CORRECTION: McCain's proposal would still allow employers to deduct expense of providing employees health insurance BUT workers would be taxed on the value of any employer paid health benefits, which would partially offset a ,000 tax credit for a family. Experts say a tax credit plan like this would likely cause companies to reduce or eliminate health benefits for their employees.
For many info on rescission see article below:
For info on McCain's ,000 tax credit for health insurance see:
Joie2008-07-18 10:20:43McCain wants to do WHAT? Are you kidding me? OMG - I've been focusing on my boy Obama - I didn't realize that!
Pip
Yes, Pip, that's exactly what McCain's plan will do. It will be business as usual but only bigger and better!!!!! The insurance companies are salivating at the thought of McCain winning. OMG - I need to research this! I thought, well, I don't know what I thought. I've been focused on playing with my daughter this summer and trying to research the cure in my spare time. Not a lot of spare time in my life. We're going ice skating in an hour!
Arrgh!
Pip
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