House Committee Chairs Ask Insurers to Ban Rescissions Ahead of Health Reform Implementation

The following press release was published by the U.S. Congress Committee on Ways and Means on April 27, 2010. It is reproduced in full below.

Dear Madam and Sirs:

Last week, most of your companies announced plans to implement ahead of schedule the provision in the health reform law allowing individuals up to age 26 to obtain coverage through their parents' health insurance. This step will help many bridge the gap between graduation and the effective date of this requirement. This decision signals that you are willing to work to make health insurance more accessible and affordable. We commend you for this step.

Also last week, Secretary Sebelius, reacting to recent media reports, wrote to Ms. Braly asking that WellPoint immediately end its efforts to rescind health insurance coverage except in cases of fraud or intentional misrepresentation of material fact. These rescissions hurt patients who need coverage the most, such as women diagnosed with breast cancer. We are writing to ask all of your companies to end any such abusive practices immediately.

In addition, to ensure that rescissions occur only in cases of fraud or intentional misrepresentation of material fact, we request that each of your companies immediately institute a policy of independent, external third party review. Under such a procedure, no individual health insurance policy should be rescinded until the review confirms that fraud or material misrepresentation has in fact occurred.

Taking these actions now would be consistent with your earlier decision to implement consumer protections for individuals under 26 voluntarily and would further demonstrate a commitment to reliable coverage for your policyholders.

Sincerely,

Sander Levin

Chair, House Committee on Ways and Means

Henry A. Waxman

Chair, House Committee on Energy and Commerce

George Miller

Chair, House Committee on Education and Labor

Pete Stark

Chair, House Ways and Means Health Subcommittee

Frank Pallone, Jr.

Chair, House Energy and Commerce Health Subcommittee

Bart Stupak