CA: Thousands of cancelled health policies offered new coverage

Los Angeles Times
Posted: August 14th, 2008 by Steve Trinward

“About 3,400 Californians whose health insurance was canceled by Kaiser, Health Net and PacifiCare after they got sick will soon receive notification that they may be eligible for new coverage and for compensation for medical bills they paid while they were uninsured. In a deal with state regulators, the insurers agreed to offer former members new coverage regardless of preexisting medical conditions and to reimburse them for medical expenses. In exchange, the state Department of Managed Health Care will close investigations into the companies’ rescission practices. Regulators began mailing out notices to individuals Tuesday. The state’s largest insurers have all been widely accused of looking for ways to drop individual policyholders who incur high costs. The insurers contend that members who are dropped have misrepresented their medical histories on their applications. The practice has been condemned by lawmakers, judges and regulators.” (08/13/08)

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