Firm cancels health insurance coverage for girl, 17, after celiac disease diagnosis -- chicagotribune.com

Firm cancels health insurance coverage for girl, 17, after celiac disease diagnosis -- chicagotribune.com

American Community Mutual's rescission numbers 'cause for concern,' says director of Illinois Department of Insurance

In the months that followed her diagnosis, her insurance company, American Community Mutual Insurance, combed through her medical records and ruled that her parents lied on her application last year.

In May, American Community not only canceled her policy, but also rescinded coverage all the way back to the day it started -- Nov. 1.

Her parents, Dale and Pat Rice of Deerfield, insist they were truthful on Brianna's application and say the insurance company is trying to back out of covering their daughter because of the February diagnosis.

American Community disagrees, saying that if the Rices had given the company Brianna's full heath history when they applied for coverage, it would never have been granted.

The Rices filed a complaint with the Illinois Department of Insurance, then fired off an e-mail to What's Your Problem?

"We are livid," said Dale Rice, who, along with his wife, is out of work. "When a private insurer gets legitimate claims and seeks to find excuses not to pay them, they are clearly demonstrating morally and ethically bankrupt behavior."

The family's situation shows just how quickly health insurance problems can lead to financial ruin. With their daughter's unpaid medical bills exceeding $20,000 and mounting, the Rices fear losing their home. Pat Rice said she cashed in some of her retirement account to pay bills.

"The next step is really bankruptcy," her husband said. ...