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Foundation for Taxpayer and Consumer Rights



Draft Rules Won't Stop Insurers' Illegal Cancellations of Health Policies



November 9th, 2007

Draft regulations released by the Schwarzenegger Administration fail to protect patients from illegal cancellation of policies and allow insurers to decide which policies to cancel without prior review by independent regulators, said the Foundation for Taxpayer and Consumer Rights (FTCR). FTCR said that the weak cancellation rules add to problems with legislation supported by Governor Schwarzenegger that would require all Californians to buy private health insurance policies.

Following widespread reports of insurers violating the law by canceling coverage on the basis of so-called "omissions" on a patient's enrollment application -- regardless of whether patients...


Source: Biotech Law Weekly (2007-11-09)

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