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Reuters(Reuters) - WellPoint Inc said that as of May 1 it would expedite healthcare reforms and stop dropping healthcare coverage for customers after they get sick, responding to pressure from Democrats in Congress and the Obama administration.
The health insurer announced its decision on Tuesday after Democrats from three U.S. House of Representatives committees earlier in the day wrote to seven health insurance executives urging them to immediately stop the practice, known as rescission. A separate letter from 57 Democrats was directed at WellPoint alone.
Healthcare reform legislation passed last month makes rescission illegal except in cases involving fraud or intentional misrepresentation, allowing six months to comply. But Democrats pushed for action sooner following a Reuters report on April 22 that WellPoint used computer algorithms to target women with breast cancer for an investigation, with the intent of canceling their healthcare policies.
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Democratic lawmakers called on WellPoint, UnitedHealth, Humana, Aetna and other insurers to immediately ban such actions except in cases of fraud or intentional misrepresentations and to institute third-party reviews of any decision to drop coverage. The letter also went to the Blue Cross Blue Shield Association, Kaiser Permanente and Assurant Health, part of Assurant.
In the letter to WellPoint, House Democrats backed a call by Representative Rosa DeLauro urging the insurer "to end the deplorable practice of canceling health insurance coverage for patients diagnosed with breast cancer or any other illness."
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http://www.reuters.com/article/idUSN2710911520100428