Raising Women’s Voices

Law Banning Rewards for Rescissions Caps Statewide Effort

Posted in Insurance companies by raisingwomensvoices on July 28, 2008

Gov. Arnold Schwarzenegger’s (R) signature this week on a bill banning health insurers from rewarding their employees for rescinding or limiting coverage comes on the heels of state regulators reaching deals with the state’s five major insurers over rescissions.
The governor signed AB 1150 by Assembly member Ted Lieu (D-Torrance) on Tuesday. It is one of several bills aimed at the individual insurance market that lawmakers introduced following state investigations into rescissions, a practice in which insurers revoke policies after people get sick and file claims.
Only people who buy coverage in the individual health insurance market are subject to rescissions; members of group plans cannot have their coverage rescinded. An estimated 14 million Americans, including three million in California, have individual policies.

read_more: http://www.californiahealthline.org/theweekly.aspx?article=legislative&w=07/25/2008

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