WellPoint and Blue Shield to End Recisions

WellPoint the parent company of Anthem Blue Cross and Blue Shield of California have announce to end the practice of rescission of their members in a press conference on Tuesday. This comes when President Obama chastised Anthem Blue Cross for announcing premium increase of 40% earlier this year.

This year the Congress has eliminated the policy  to cancel health insurance policies of very sick people, when they pass the health care reform law.Recision is normally use when a member commits medical insurance fraud

WellPoint Chief Executive Angela Braly said in a statement that the company’s “goal is to make reform work for our members and for the country.”

Cindy Ehnes, director of the California Department of Managed Health Care and the first regulator to take on the insurers over the practice, said the move would help consumers. “People can have more confidence in their coverage, and that’s very exciting,” she said.

Even before Tuesday’s announcements, however, health insurers in California had all but stopped the number of policy cancellations, state records show.

Times has changed in 2005 1,552 health insurance policies canceled. Last year only four policies were canceled. In 2004, 5000 people had their health insurance polices stopped.

Anthem Blue Cross, Blue Shield, Health Net, Kaiser and PacifiCare(engaged in the process). That includes about 3,500 policies regulated by the Department of Managed Health Care and another 1,600 policies regulated by the Department of Insurance.

The decision hailed by critics of the policies of the health insurers.

Rescission is “on life support, and they’re about to pull the plug,” said plaintiffs lawyer William Shernoff.

The lawyer won a $9-million judgment against Health Net in 2008 over its rescission of hairdresser Patsy Bates after she was diagnosed with breast cancer. Evidence showed the company paid bonuses to an employee based in part on rescission volume.

LA Times has more


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