More of that hopey changey stuff: "WellPoint says to stop dropping patients after May 1"

WellPoint says to stop dropping patients after May 1
(Reuters) - WellPoint Inc said that as of May 1 it would stop dropping healthcare coverage for customers after they get sick, responding to pressure from Democrats in Congress and the Obama administration.

The health insurer announced its decision on Tuesday after Democrats from three House of Representatives committees earlier in the day wrote to health insurance executives urging them to immediately stop the practice, known as rescission. A separate letter from 57 Democrats was directed at WellPoint alone.

"There have been a lot of misrepresentations and inaccuracies in recent days that have caused confusion among our members and among the public generally about our policies in this area," WellPoint's Chief Executive Angela Braly said in a statement. "We think today's announcement will go a long way toward bringing greater clarity."

The company's action and the letters follow a Reuters report on April 22 that WellPoint, the largest health plan in the Blue Cross Blue Shield Association, used computer algorithms to target women with breast cancer for an investigation, with the intent of canceling their healthcare policies.

WellPoint has said its software looks for conditions patients may have had before seeking insurance coverage but that it does not single out breast cancer.

Healthcare reform legislation passed last month makes this practice illegal but gives companies six months to comply.

Democratic lawmakers called on WellPoint, UnitedHealth, Humana, Aetna and other insurers to immediately ban such actions except in cases of fraud or intentional misrepresentation. They also asked the companies to "immediately institute a policy of independent, external third-party review" to confirm fraud.

In the letter to WellPoint, House Democrats backed a call by Representative Rosa DeLauro urging the insurer "to act immediately to end the deplorable practice of canceling health insurance coverage for patients diagnosed with breast cancer or any other illness."

WellPoint's decision "will benefit countless women in the future who will be diagnosed with this disease," DeLauro said in a statement on Tuesday.

http://www.reuters.com/article/idUSN2710911520100427