CA law will stop insurers from retroactively cancelling sick persons insurance

Also, CA to require "insurers to spend at least 85% of health insurance premiums on medical care"
Sorry CEOs, your multi million $ bonus just got a tiny bit smaller, oh I am sure that
there are ways around this. Oh but you won't make that bonus by retroactively canceling sick people's benefits any more.

California Legislature enacts no major healthcare overhaul but OKs some key changes
Los Angeles Times (free registration) (9/4)

One bill would curb retroactive cancellation of sick patients' coverage. Aggressive lobbying by insurers and doctors and internal feuds among Democrats kill most proposals.
By Jordan Rau, Los Angeles Times Staff Writer
September 4, 2008

The Legislature's major healthcare accomplishments involved several high-profile, though relatively uncommon, practices that afflict consumers and patients. Lawmakers agreed to stop insurers from retroactively canceling policies of sick customers except in cases in which the companies could prove their customers intentionally misled them when first applying for coverage.

Legislators decided to clamp down on hospitals that bill patients above what their insurance covers for emergency room and follow-up care. The practice, called balance billing, leaves consumers making up the difference when there are payment disputes among hospitals, doctors and insurers.

The Legislature also voted to create a new office to protect patient privacy in response to breaches at UCLA Medical Center, where more than 120 employees inappropriately viewed the medical records of prominent patients including actress Farrah Fawcett, singer Britney Spears and California First Lady Maria Shriver. Repeated privacy breaches at hospitals, nursing homes and doctors' offices could lead to fines as high as $250,000.

Legislators agreed to order hospitals to be much more vigilant about infectious diseases that can spread from patient to patient....

more here http://www.latimes.com/news/local/la-me-health4-2008sep04,0,4212626.story

About 12 years ago, Washington enacted some major reforms of the medical insurance industry in the state. In response, insurers refused to do business: they stopped writing new policies and began cancelling existing policies. When the last large insurer -- Blue Cross -- began shutting down their operations, the legislature relented. All the reforms were rolled back, and then some. We still have fewer insured people in Washington than we did before these reforms were enacted.

and they make their money by denying access to care.