three large insurers rescinded almost 20,000 policies over five years, saving $300 million in medical claims.

Daily Dose - HHS: Insurance Companies Encourage Employees to "Revoke Sick People's Health Coverage"
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... 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cited recent research by the staff of the House Committee on Energy and Commerce, which found that three large insurers rescinded almost 20,000 policies over five years, saving $300 million in medical claims.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 ...