People left holding bag when policies revoked
My wife and I say we pay and they don’t when it comes to insurance companies. Do we need to reform the cancel and claim reject process?
Denise Wheeler, an artist in Laguna Beach, Calif., thought she and her family had health insurance.
USA-TODAY-So did Tony Seals, a self-employed businessman in nearby Riverside. Across the country in Connecticut, Maria Locker and Linda Gaskill each bought short-term insurance policies to protect themselves against catastrophic costs.
But each was left with tens of thousands in unpaid medical bills when their insurers — all major companies — retroactively canceled their policies after they faced expensive health problems. “It’s the most devastating thing that’s ever happened to us,” says Seals, 43.
Their stories illustrate a little-recognized fact about insurance purchased by individuals: Even after being approved, policyholders can see their coverage amended to exclude certain medical conditions or revoked entirely, sometimes long after the policies are issued.
“Insurers love to market the promise, ‘We’ll take care of you. Just sign here,’ ” says Karen Pollitz of the Institute for Health Care Research and Policy at Georgetown University. “Then there is all this opportunity for the insurer not to keep the promise, and you don’t find out until it’s too late.”
How can this be legal? Aren’t they discriminating against sick people? Aren’t they guilty of false advertising? Misrepresentation?
Lousy scum insurance companies…
I’ll lay low and continue downing my vitamins, drinking aloe vera juice, eating my organic veggies, juice fasting and and carrying my lucky rabbit’s foot…
Its $$$$$$ Thats why insurance companies are in business to make$$$$$ by hook or crook.These stories are top of the scale.The claims denied of less then $10 thousand probably would make people drop all health insurance policies. These people cant afford lawyers bills of 5-6 thousand with no guarantees that the lawyer will win their cases so they bow out and pay the claim themselves.
Accountability.Insurance companies that want your business should be held accountable with the first payment that they are taking on risk and are held accountable for that risk.It would make them accountable for any statements made even if in error by the insured.
This is why Romney’s mandatory insurance plan is nothing but a handout to insurance companies on the backs of the taxpayers and uninsurable.
Learner
You are right that the claim game scam is a big issue.
Georgia Office of Commissioner of Insurance
The first step anyone in this position must take is to write their congressmen at both the state and federal levels, along with the governor. Leverage in the form of government condemnation and a revoking of the company’s lisence to sell in the state is about all a person has.
Unfortunately, these things aren’t necessarily known by everyone, and too many people think that the press will tell their story and all will be well. Truth is, the insurance companies know that the herd doesn’t care about its own enough to make a stink on someone’s behalf, so they’ll take their chances.
It’s when a governor or the federal government start making calls and hint at taking action to revoke the company’s ability to profit off of their market…that is when the beast finally wakes up.
Much like the Senate threatening to put the screws to Bush over this war…right now they’re in the non-binding/going-to-the-press phase, so he’s not caring much about what they’ll do. Once the REAL threat of having the plug pulled becomes real, only then will action be forced.
Power doesn’t respond to anything unless it is truly threatened.