Reply #36: 2712. No rescission [View All]

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. Such plan or coverage may not be cancelled except with prior notice to the enrollee, and only as permitted under section 2702(c) or 2742(b).

As I was once accused of being dishonest for ignoring section 2702 and 2742 which the poster claimed, somehow, mitigated this gaping loophole, I will now post 2702 for the readers to see for themselves if it, indeed, address this issue at all. I would welcome any help at all in finding section 2742 in this bill as I have searched it, extensively, and can not find it listed at all in the contents or in a scrolling of the entire bill. My belief, though, is if found it has nothing to do with closing the above loophole.

SEC. 2702. GUARANTEED AVAILABILITY OF COVERAGE.

`(a) Guaranteed Issuance of Coverage in the Individual and Group Market- Subject to subsections (b) through (e), each health insurance issuer that offers health insurance coverage in the individual or group market in a State must accept every employer and individual in the State that applies for such coverage.
`(b) Enrollment-
`(1) RESTRICTION- A health insurance issuer described in subsection (a) may restrict enrollment in coverage described in such subsection to open or special enrollment periods.
`(2) ESTABLISHMENT- A health insurance issuer described in subsection (a) shall, in accordance with the regulations promulgated under paragraph (3), establish special enrollment periods for qualifying events (under section 603 of the Employee Retirement Income Security Act of 1974).
`(3) REGULATIONS- The Secretary shall promulgate regulations with respect to enrollment periods under paragraphs (1) and (2).