Insurance companies refuse to stop cancelling sick patients' policies

(Kaiser Health News) UPDATED 2009-06-17

Despite calls to stop the practice, executives from the insurance industry's top three insurers--UnitedHealth Group, Wellpoint, and Assurant--say they will continue to cancel the insurance policies of some sick patients. Members of Congress grilled the executives on this practice--known as rescission--this week after the House Subcommittee on Oversight and Investigations found that policyholders with more than 1,000 conditions, including breast cancer and lymphoma, have been targeted for rescission. House members also found evidence that employees were praised in performance reviews for terminating the health policies of customers with expensive illnesses. The insurance executives told Congressional members that they would continue the practice, which they say has saved the insurance industry an estimated $300 million over a five-year period. Read full story >

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