The Biggest Scam in Health Care Reform

[Crabcake Johnny]

Two carriers, UHC and Wellpoint announced an end to rescissions. Oh, except in cases of fraud. They are going for brownie points in announcing this ahead of the September deadline when the legislation prohibits carriers from rescinding....except in cases of fraud.

News flash. The only reason policies are cancelled currently is due to "fraud." Clients who "forget" they were on depression medication for 2 years are the same clients who "forget" they live in a zip code for high auto rates and mistakenly put down their parents address. They are the same people who file for disability but mistakenly play football on the weekends.

Please.

Rescissions account for 1 10th of 1% of all policies. Will that change after the legislation takes effect? No. Because it's still fraud to list your weight as 200 when you're 280. It's still fraud to list yourself as a non-smoker when you "smoke occasionally."

"Yes, I get DWI's - but only from time to time."

 

[mdudayev]

I agree with you on that one. I have never seen a company drop a person because they got sick. So there is no change in that.

 

[scagnt83]

When I was green I had sold probably 40 health policies before I had even ever heard of recission, lol.

A prospect asked me about it once. They had read some article about it and insisted that their policy not have a recission provision in it. After I researched it and explained it to them they where not worried at all and went with my original recommendation!!

 

[TXINSURANCE]

Rescissions account for 1 10th of 1% of all policies.

Where did you get this figure? What is it based on?

I know carriers that rescind well over 1%, and some well under.

But the point of your post is well taken - it is similar to "no longer canceling policies due to health problems" - you can't do that now anyhow!

All BS. The whole thing.

 

[somarco]

InsureBlog: I'm Not Bad, I'm Just Drawn That Way

Wellpoint - "less than one tenth of 1% of policies rescinded"

 

[Crabcake Johnny]

Where did you get this figure? What is it based on?

I know carriers that rescind well over 1%, and some well under.

But the point of your post is well taken - it is similar to "no longer canceling policies due to health problems" - you can't do that now anyhow!

All BS. The whole thing.

WellPoint implements rescission law early

"The company also claims it does not single out breast cancer or pregnancy for rescissions, and claims in 2009 that less than one-tenth of 1 percent of its individual members' policies were rescinded."