Colo. May Outlaw Incentives For Denying Coverage

Law360, New York (February 6, 2009, 12:00 AM EST) -- A bill that would make it illegal for insurance companies to reward their workers for denying claims has passed through a Colorado Senate committee.

Senate bill 09-103, sponsored by Colorado Sen. Morgan Carroll, D-Aurora, passed through the Senate’s Health and Human Services Committee by a 7-1 roll call vote. The proposed legislation was referred to the Senate Appropriations Committee.

The legislation would make it illegal for health insurance companies to pay bonuses to employees who deny claims or cancel insurance policies when they learn of likely...
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