WASHINGTON, D.C. - Yesterday, House Ways and Means Committee Chairman Sander M. Levin (D-MI) and Health Subcommittee Chairman Pete Stark (D-CA) joined colleagues on the House Energy and Commerce and Education and Labor Committees in a letter to insurance companies, asking them to end the practice of rescission - canceling an individual's coverage once he or she becomes sick - except in cases of fraud or intentional misrepresentation. The letter also asked that insurers have an independent third party review all proposed policy cancellations.usa.gov/iPx.
Following a reported conference call last night with insurance company CEOs, several insurance companies, including United Healthcare, Humana, and BlueShield California, today responded to House Democrats' letter by saying that they would immediately begin implementing the ban on rescissions in the health reform legislation. Yesterday afternoon, WellPoint made the same pledge. Kaiser Permanente also responded that they have not rescinded any health coverage since they ended the policy of rescission several years ago. In reaction to this news, Ways and Means Chairman Sander M. Levin and Health Subcommittee Chairman Pete Stark issued the following statements:
“There is a lesson to be learned here," said Ways and Means Committee Chairman Sander M. Levin (D-MI). “These companies have seen the writing on the wall and decided to align their practices with the law of the land even before they are required to do so. This should send a message to all involved that working to implement health insurance reform provisions seamlessly and in good faith is the best course going forward."
“Republicans can take a cue from the insurance industry this week," said Health Subcommittee Chairman Pete Stark. “Now that health reform is law, insurers appear to be working to help implement important consumer protections ahead of schedule. It's time for Republicans to stop pandering to the tea party crowd with calls for repeal, and work together to implement reforms that will improve Americans' health care."
