It probably came as no great surprise to anyone when the executives of three major health insurance companies told Congress they intend to continue to cancel medical coverage for some sick policyholders.
UnitedHealth Group, WellPoint Blue Cross and Assurant Inc. have canceled coverage to more than 20,000 including those suffering from breast cancer, lymphoma, high blood pressure, pregnancy and other serious diseases. This crass action pocketed the companies $300 million over five years.
Insurers targeted policy holders with serious illnesses, encouraged their employees in the practice of rescission or cancellation of coverage after the fact, and even went so far as to give bonuses and performance enhancements to employees who terminated clients who had high-expense illnesses.
Although the executives defended their rescission actions as a means of ferreting out fraud, they refused to commit to Congress that they would only rescind policies involving intentional misrepresentation on applications and intentional fraud. Really, to only root out fraud? A nurse diagnosed with aggressive breast cancer testified she was cancelled for failing to divulge a visit to the dermatologist for acne. An Illinois woman testified about her deceased brother who died from lymphoma being cancelled for not disclosing possible gallstones his doctor had never even discussed with him. Fraud? I don’t think so. Just follow the money trail for the real reason behind the cancellations.
When private insurers are allowed to get away with cancelling a sick person’s health coverage after the fact simply to increase profits, the system is broken. Perhaps that’s why there is a growing call for a public option for health coverage so those least able to fight the big insurance companies have an alternative.
