WASHINGTON, D.C. - Earlier today Chairman Levin and Health Subcommittee Chairman Stark joined leading colleagues from the House Committees on Energy and Commerce and Education and Labor calling upon health insurance companies to immediately end the practice of rescission - terminating an individual’s coverage once he or she becomes sick - except in cases of fraud or material misrepresentation.
Shortly after the letter was sent, WellPoint, a large insurer and one of the recipients of the letter, publicly announced it would comply with the request. In reaction to this news, Ways and Means Committee Chairman Sander M. Levin (D-MI) and Health Subcommittee Chairman Pete Stark (D-CA) issued the following statements:
“WellPoint’s rescissions have drawn a great deal of attention to this reprehensible practice," said Ways and Means Committee Chairman Sander M. Levin. “While I welcome the news that they will immediately implement the ban on individual policy rescissions, I strongly encourage other companies that have engaged in this practice to immediately follow suit."
"The race is on," said Health Subcommittee Chairman Pete Stark. “WellPoint took the first step, now it's up to the other insurance companies to show they're serious about making health reform work. They need to end rescissions, and put in place a system where every proposed cancellation is reviewed by an independent third party."
