Rescissions Ceased For Patients With Pre-Existing Conditions

April 28, 2010

WellPoint, Blue Shield of California will stop the practice of dropping sick policyholders

WellPoint will start complying ahead of schedule with the healthcare reform that will stop policy rescissions of sick policyholders. Effective May 1st, WellPoint will follow the guideline that only allows a policy rescission for fraud or intentional misrepresentation. Other carriers are expected to follow suit.

Massachusetts low-income senior citizens may be forced into managed care programs if a bill sponsored by Representative Peter J. Koutoujian is passed. It would require seniors who are receiving state-subsidized Medicaid and federal Medicare to be automatically enrolled in managed care plans. It is estimated that the cost savings to the state would be significant.

As part of the healthcare reform bill, insurers would be required to spend 80% of premiums on healthcare. A preliminary review by state regulators has revealed that most carriers can meet this requirement.

Read more on these stories in today's NAHU Newswire.

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