US health insurers must stop issuing rescissions, the practice of terminating coverage when a policyholder becomes ill, starting in September of this year. The change of heart by US health insurers is not because of moral principles, but rather legislation passed by congress.
Under the Patient Protection and Affordable Health Care Act, insurance companies will be allowed to cancel coverage only if they can prove fraud or intentional misrepresentation.
Rescission primarily affects people who are forced to by their own health insurance rather than relying on large employers to prove it. According to the National Association of Insurance, rescission occurred at an average rate of 3.7 for every 1,000 policies from 2004 to 2008.
It is not yet clear how the rescission ban will be enforced. If left to the insurers, I am sure they will have your best interest at heart.
J. Kyle Mathews, MD
Plano OB Gyn Assocaites
Plano Urogynecology Associates