Health Insurance Cancellation Illegal?
Are Health insurance cancellations legal? Since October 1st, millions of Americans have had their health insurance policies terminated by insurance companies. Last Thursday, President Obama made a statement about fixing the ACA and how he will prevent insurers from canceling policies. Apparently, members of the executive/legislative branch are finally reading the very law that they actually created. Under federal law, it is illegal for insurers to cancel your policy. This prohibition has been in federal law since March 23, 2010. Federal law 42 USC 300gg-12 specifically says:
A group health plan and a health insurance issuer offering group or individual health insurance coverage shall not rescind such plan or coverage with respect to an enrollee once the enrollee is covered under such plan or coverage involved, except that this section shall not apply to a covered individual who has performed an act or practice that constitutes fraud or makes an intentional misrepresentation of material fact as prohibited by the terms of the plan or coverage. (July 1, 1944, ch. 373, title XXVII, §2712, as added Pub. L. 111–148, title I, §1001(5), Mar. 23, 2010, 124 Stat. 131.) PL 111-148 = Patient Protection and Affordable Care Act.
What we have been witnessing lately should not have happened at all! What we are seeing at the executive/legislative level are individuals who are finally paying attention to the federal law that they actually make. There is a great line in “The Cosby Show” that sheds some light on this. The line comes from an episode (“Attack of the Killer B’s”, line said 4:14 into episode) where Cousin Pam and a friend are studying for an exam where she has to describe the three branches of government. The line says: “The legislative, they make the law. The judicial, they interpret the law. And the executive, they ignore the law!” This great line winds from this television classic winds up being very true. Especially in this particular case.