WellPoint Rescissions Underscore Need for CMA Bill

A Reuters report on April 22, 2010, exposing the shocking practice of WellPoint targeting women with breast cancer for rescissions has prompted a letter from Kathleen Sebelius, the secretary of the U.S. Department of Health and Human Services, urging the insurer to “immediately cease” this “unconscionable practice.”

The report raises questions about whether recently passed federal healthcare reform does enough to prevent insurers from systematically canceling coverage for patients once they become seriously ill and medical bills mount.

CMA has fought this outrageous conduct since it first came to light two years ago. Legislation sponsored by CMA that would require an independent review of decisions by insurers to rescind coverage — AB 2470 by Assemblyman Hector De La Torre, D-South Gate — has passed the Assembly Health Committee and is awaiting a hearing in the Assembly Appropriations Committee.

It’s unclear whether the federal government will require an independent review of rescission decisions, as would be mandated by AB 2470. As the Reuters story points out, critics worry that the federal law will not be strong enough to stop rescissions.