Americans are already starting to see the benefits of health care reform. The new law requires health insurance companies — starting in September — to end their most indefensible practice: rescinding coverage after a policyholder gets sick. In recent days insurers and their trade association have rushed to announce that they will end rescissions immediately.
That is very good news for the thousands of people who each year pay their premiums but lose their coverage just when they are likely to run up big medical bills.
The insurers decided to act quickly after they were whacked by some very bad publicity. An investigative report by Reuters said that one of the nation’s biggest insurers, WellPoint, was targeting women with breast cancer for fraud investigations that could lead to rescissions.
Although WellPoint fiercely denied singling out breast cancer patients for scrutiny, it acknowledged using computer algorithms to search for a range of conditions that applicants would likely have known about at the time they applied. That seemed like a backhanded admission that it was indeed searching for excuses — the company would say legitimate reasons — to cancel coverage. The Obama administration and Congressional Democrats urged insurers to end rescissions at once.
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http://www.nytimes.com/2010/05/03/opinion/03mon1.html?src=twr