Health Insurers and Cancellations, can affect thousands of policyholders

Health Insurers and Cancellations, can affect thousands of policyholdersIn the event a health insurance policy is to be rescinded , Cigna Corp is the latest health insurer to say that it will implement a third party review process, even though it was not among the insurance companies which House Democratic Leaders requested to do so. Chief Executives of seven insurance companies received letters from the House Committee Chairman, urging them to end the policy of dropping coverage for member who becomes sick except in cases of fraud or material misrepresentation ahead of the date called for under the federal health care fix.

The America’s Health Insurance Plans lobby group , on late Wednesday, said the industry agreed to implement the new recession ban in May while Cigna Corp made separate announcements about implementing the law early. Stuart Altman, a Professor of National Health Policy at Brandeis University, told Reuters, “The impact on the industry will be fairly limited ... but it will be an enormously positive step for the few people who are affected, There are a few companies out there who are small and feed on this individual market, and they've been the bad apples”. While The Director of the White House of Health Reform said in a statement late on Wednesday, Nancy Ann DeParle, said, “It’s heartening to see that the insurance companies who employed these terrible practices -- and fought reform -- are coming around doing the right thing. We’ll be watching closely and holding them to their word,”

In March health insurers had fought hard against the healthcare bill without a single republican vote and bans other practices, while in an attempt to thwart such calls, Democrats pounced on the industry’s decision such as refusing to cover people with pre existing illnesses and capping lifetime payouts.

Companies: