Insurers won't change rescission stance

WASHINGTON, June 17 (UPI) -- The three largest U.S. health insurers say they won't end the controversial practice of rescission, canceling health insurance policies after claims are made.

Top executives of UnitedHealth's Golden Rule Insurance Co., Assurant Health and WellPoint Inc., appearing Tuesday before the the House Subcommittee on Oversight and Investigations, told angry lawmakers they would not confine such rescissions to cases in which intentional fraud on the part of the policyholder can be shown, the Los Angeles Times reported Wednesday.

Despite a committee investigation that showed the three companies canceled the coverage of more than 20,000 people -- allowing the insurers to avoid paying more than $300 million in claims over a five-year period -- the executives would not commit to ending or even limiting the practice, drawing the displeasure of both Democratic and Republican lawmakers, the newspaper said.

"No one can defend, and I certainly cannot defend, the practice of canceling coverage after the fact," said Rep. Michael C. Burgess, R-Tex. "There is no acceptable minimum to denying coverage after the fact."

Democratic strategist Paul Begala told the Times the executives' performance could hurt the insurance industry's efforts to position itself in the debate over healthcare reform.