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A Ruling To Have Long Term Impact on Health Insurance Industry

The morally questionable practice of health insurance companies cancelling coverage after a major illnees or injury is finally going to be addressed by legislation in California. The case is focused on a Cypress county citizen who was dropped from his individual health insurance plan after suffering a major car crash which left him disabled. The issue involves the practice of waiting until a member submits a claim before verifying their medical history and then dropping them for certain factors which they deem make the member ineligible for coverage. Basically, the insurance companies are happy to take someone’s money in the form of premium as long as they do not submit a claim, however once a claim is submitted, they find a way to deny the claim or cancel coverage based on medical history. The outcome of this case would determine if companies have the right to do this, or if there is a limited window of time in which they can verify medical history before premium is collected. In addition, many of the medical conditions insurers site as reason for denial of coverage have nothing to do with the current claim. What are your thoughts on this case? What do you think the outcome will be?

This entry was posted on Monday, May 18th, 2009 at 11:54 am and is filed under Health Insurance. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.

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