I’ve said many times that our healthcare system is far from perfect. This is a perfect example of the sort of stuff that needs to stop — insurance companies canceling a policy based on “pre-existing condition” that isn’t.
My preferred solution is to turn insurance regulation over to the Feds. It has become abundantly clear that the state insurance regulators are utterly toothless. Insurance companies do this because few people have the motivation or resources to sue. The Feds, however, have effectively infinite resources.
There is an additional problem in that many state insurance markets are effective monopolies — allowing interstate competition would solve that problem.
What we do not need is coverage mandates and rescission laws that make it easier for people to wait until they’re sick to buy insurance. That will only make the problem worse.
Mike, do you know if an insurance company that rescinds a policy is required to refund the premiums the patient paid up to the time the policy was rescinded? From reading these articles, it looks like they’re not, which makes no sense to me. Why is an insurer entitled to keep premiums for coverage they never had any intention of providing?