HHS: Insurance Companies Encourage Employees to "Revoke Sick People's
Health Coverage"

By David S. Hilzenrath
Washington Post

You might have known that insurers can deny health coverage based on
preexisting medical conditions, but here’s something else to worry
about: They can take away the coverage you thought you had when actually
need it, the government says.

The Department of Health and Human Services put a spotlight on that
practice Tuesday in its continuing campaign to build support for an
overhaul of health insurance.

“When a person is diagnosed with an expensive condition such as cancer,
some insurance companies review his/her initial health status
questionnaire,” the HHS said in a posting at HealthReform.Gov. In most
states, insurance companies can retroactively cancel individuals'
policies if any condition was not disclosed when the policy was
obtained, "even if the medical condition is unrelated, and even if the
person was not aware of the condition at the time.”

“Coverage can also be revoked for all members of a family, even if only
one family member failed to disclose a medical condition,” HHS said.

The department cited recent research by the staff of the House Committee
on Energy and Commerce, which found that three large insurers rescinded
almost 20,000 policies over five years, saving $300 million in medical
claims.

At least one insurer included such savings in an employee performance
evaluation.

“Simply put, these insurance company employees are encouraged to revoke
sick people’s health coverage," HHS said

The research compiled recently for a House hearing included more detail.

WellPoint and Assurant told the committee that they automatically
investigate the medical records of every policyholder with certain
conditions, including leukemia, ovarian cancer, brain cancer, and
becoming pregnant with twins, the committee staff wrote.

In November 2006, after a Texas resident was found to have a lump in her
breast, Wellpoint investigated her medical history and concluded that
she had been diagnosed previously with osteoporosis. The insurer
rescinded her policy and refused to pay for treatment of the lump, the
committee staff wrote.

Today’s HHS post, which draws on a variety of studies going back as far
as 2001, shows how the Obama administration is trying to give people
reasons to support an overhaul of health care even if they are satisfied
with their existing coverage. It also reflects a stepped-up focus on
health insurers, which are increasingly being cast as bogeymen in the
debate.

Under the current system, something as relatively simple as seasonal
sneezing can jeopardize your financial security, HHS argues, citing a
2001 study for the Kaiser Family Foundation.

“Even when offering coverage, insurers can exclude whole categories of
illnesses related to a preexisting condition. For example, someone with
a preexisting condition of hay fever could have any respiratory system
disease – such as bronchitis or pneumonia – excluded from coverage,” HHS
said.


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Be very scared, Sarah Palin.