California, health insurers reach agreement to reinstate coverage for some former members
August 14th, 2008 | by admin |
Healthcare News
About 3,400 California residents whose health insurance was canceled by Kaiser Permanente, Health Net and PacifiCare soon will be notified that they might be eligible for new coverage and compensation for medical bills incurred while they were uninsured, the Los Angeles Times reports.
The state has been investigating the insurers over claims that the companies scrutinized members’ insurance applications for reasons to cancel coverage after they had become ill and filed claims.
Under an agreement with the California Department of Managed Health Care, the insurers will reinstate policies of members whose coverage was inappropriately canceled, regardless of pre-existing medical conditions, and reimburse them for medical expenses. In exchange, the state will close its investigation into the companies’ rescission practices. The terms of the settlement are “unprecedented in their ambition to restore coverage,” the Times reports.
At a hearing in a lawsuit brought against Health Net width=396 align=left vspace=5 border=0>This article is republished with kind permission from our friends at The Kaiser Family Foundation. You can view the entire Kaiser Daily Health Policy Report, search the archives, or sign up for email delivery of in-depth coverage of health policy developments, debates and discussions. The Kaiser Daily Health Policy Report is published for Kaisernetwork.org, a free service of The Henry J. Kaiser Family Foundation. Copyright 2008 Advisory Board Company and Kaiser Family Foundation. All rights reserved.
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