We all know that California is falling into the ocean. Not due to the “Big One” or the liberal ideas, but due to the fact that they are drowning in debt. One of the factors of this problem is a California health care practice known as rescission of contract.
If you don’t know what this is, you either have been insanely healthy your entire life and have never, ever made a mistake filling out insurance paperwork, or you just don’t live in California. Rescission of contract is a practice where the Medical Mafia (big insurance companies) can literally drop you from their program for the tiniest of mistakes.
California Commissioner Steve Poizners will unveil his plan to stomp out the practice of rescission of contract.
It is the latest effort to curb rescission, an industrywide practice that has deprived thousands of Californians of healthcare coverage when they were sick, left many with crushing medical bills and saddled physicians and hospitals with uncollectible debt.
The once-hidden practice has drawn scrutiny since it was exposed in a series of Times articles over the last three years.
Consumer advocates said the rules would make it virtually impossible for insurers to drop people over innocent mistakes, omissions and misunderstandings. Insurers said they were reviewing the proposal. – The LA Times
