Incorrect information

Sep 4, 2007

  1. analyn_cl
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    analyn_cl New Member

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    Does incorrect information can rescind my health policy insurance? Shall I be refunded if this happens?



     
  2. STIBROKER
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    STIBROKER Like My post and enter the DRAWING,,,, Moderator

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    how long has the policy been inforce....is it a true group or individual association plan saying the are a group plan....and what state are you in....
     
  3. Alston
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    Alston Guru

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    If the incorrect information is material, they can rescind the contract if the contract is within the incontestability period.

    What this means is that if the correct information would have caused them not to insure you, they will refund all of your money minus any money paid on claims if they catch the mistake in the first two years.
     
    Alston, Sep 5, 2007
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  4. STIBROKER
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    STIBROKER Like My post and enter the DRAWING,,,, Moderator

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    not if its a group plan.....

     
  5. Alston
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    Alston Guru

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    What happens if it is a group plan?

    Sorry about the bad information. I've never done group. I just assumed... But Mr. Sochrin (high school math) warned me about assuming. I suppose since the contract covers the group, you can't rescind the contract for the whole group based on one person's misdeeds.
     
    Alston, Sep 5, 2007
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  6. STIBROKER
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    STIBROKER Like My post and enter the DRAWING,,,, Moderator

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    usually the rate increase on the anniversary is high....depending on the size of the group.....

     
  7. ToddB
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    ToddB New Member

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    It depends on the incorrect information. If it is small group and an employee filled out the employee app incorrectly about health questions, and claims start coming in, they may adjust the rates on you. For example, Aetna can adjust rates within 30 days if something changes such as adding employees. If it is something like an incorrect SIC code, the undewriters will probably make the adjustment when they verify SIC with their D&B report.

    Most likely, if it is a larger group and there is a gatekeeper questionnaire instead of individual medical questions, the medical issue will appear during the year and rates will be adjusted accordingly at renewal time.
     
    ToddB, Sep 9, 2007
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  8. somarco
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    somarco That Medicare Guy

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    On small group the carrier reserves the right to change the rates with 30 days notice if the demographics of the group changes by more than 10%. If the group is enrolled as a 20 life group and 60 days later is a 2 life group you can bet the rates will change and they wont wait until the anniversary.
     
    somarco, Sep 9, 2007
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  9. Sam
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    Sam Founder Administrator

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    Not a bad discussion, but I am pretty sure the original question was just spam, so that she gets her link indexed.
     
    Sam, Sep 9, 2007
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  10. STIBROKER
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    STIBROKER Like My post and enter the DRAWING,,,, Moderator

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    we can take care of that.....