Calif. Seeks To Rein In Rescission Practices

Law360, New York (October 24, 2007, 12:00 AM EDT) -- California health care regulators have pledged to place restrictions on when insurance companies can pull health coverage after patients fall ill and recommended that insurers review an applicant’s medical history before offering a policy.

The Department of Managed Health Care and the Department of Insurance said Tuesday they planned to issue joint regulations to put a stop to illegal rescissions of health insurance policies by major state health plans.

The proposed regulations signify the first time that the health care department, which governs HMOs, and the...
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