Dec
07You might be feel fairly secure with your health insurance provider, but these days more and more insurance companies are relying on rescission to deny paying out claims to their policy holders.
Currently, when it comes to private insurance coverage, it is up to the individual states to decide the rules and regulations governing health care coverage. Nearly all the states have clauses in place to refuse coverage or deny payments for those who have preexisting conditions. The range of ailments that qualify as preexisting include acne, back pain, broken bones and life threatening conditions such as cancer and heart problems.
Rescission Basics
Rescission is when health insurance providers are able to retroactively revoke or cancel your insurance coverage even after you have been approved for coverage. Their excuse for canceling insurance coverage includes the blanket rule of the applicant providing incorrect or incomplete information during the origination process. Because of the escalating costs of health care, private insurance companies are actually using these clauses as an excuse to avoid making large payments to their policyholders.
Denied Health Insurance
There are plenty of stories that show how rescission is affecting people of all demographics:
- Christina Turner was denied coverage after her doctor prescribed AIDS medication as a precautionary measure after she was sexually assaulted.
- Karen Knee’s provider decided to rescind her health care after they first approved the removal of benign cysts from her scalp only to revoke and cancel her policy after unearthing that she occasionally got a sore back after playing soccer. The two of them are struggling with the medical bills and legal fees these actions left behind.
Until the laws governing the health insurance industry are reformed, anyone with private insurance is at risk of having their health insurance revoked. As a consumer with private insurance, it is up to you to to be 100% familiar with the terms of your contracted policy so the act of rescission does not take you by surprise.
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