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Rep. Baca Announces Health Insurance Companies To Immediately End Coverage Rescissions

Press Release

Location: Washington, DC

Today, Congressman Joe Baca (D-Rialto) announced that more critical policy changes included in the recently signed into law health care reform legislation are being enacted sooner than expected. The new law requires health insurance companies, starting in September of 2010, to end the practice of rescinding coverage after a policyholder gets sick. Recently, insurance companies across the nation, and their trade association, have rushed to announce they will enact this critical policy change immediately.

"The immediate end to insurance rescission is great news for the thousands of people who lose their coverage each year, simply because they get sick," said Rep. Baca. "The decision by insurance giants to speed up implementation of this policy change is another example of the positive and immediate impact made by health insurance reform."

Congressional investigations and hearings held last year by the House Committee on Energy and Commerce revealed many of the insurance companies troubling practices in regards to rescinding policies. While insurance giants like WellPoint claimed they only cut coverage for policy holder who failed to report pre-existing conditions, the Congressional investigation revealed that the vast majority of times, the unreported pre-existing conditions were trivial, unrelated to the claim, or unknown to the patient.

"Ending the despicable practice of coverage rescissions is a huge victory for the American people, and finally helps to hold insurance companies accountable for their shady behavior," concluded Rep. Baca. "As the rest of the provisions of health insurance reform are responsibly enacted, rest assured Congress and the Obama administration will keep a watchful eye to ensure the interests of the American public, and not the insurance companies, are best served."

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