By THE ASSOCIATED PRESS
Published: August 31, 2009
Filed at 3:19 p.m. ET
WASHINGTON (AP) -- A top House Democrat is investigating whether the nation's largest health insurers have deliberately canceled coverage for small businesses after their employees became sick and sought expensive treatment.
Rep. Henry Waxman, D-Calif., sent letters Monday to six insurers requesting details about their plans for small businesses and how coverage decisions are made.
The trade group representing the companies said the action amounted to a smear campaign designed to bolster support of a public health insurance option.
Waxman is investigating an industry practice called ''purging,'' in which insurers drop coverage for sick individuals once they become too expensive to insure. According to a statement from Waxman, health insurers will terminate coverage to small businesses by canceling their policies or raising premiums until they are unaffordable.
http://www.nytimes.com/aponline/2009/08/31/business/AP-US-Small-Business-Health-Insurers.html?_r=1