Largest Health Insurer Rewarded Employees for Canceling Sick Patients

Thursday, June 18, 2009

The health insurance industry managed to sink to a new low this week when a congressional committee revealed that it is common practice for insurers to pay their employees incentives for canceling the policies of sick patients. Documents obtained by the House Subcommittee on Oversight and Investigations of the Committee On Energy and Commerce showed how insurance company workers for WellPoint received high marks on performance reviews after saving millions of dollars in costs through the practice of “rescission,” or retroactively canceling policies on technical grounds. Three insurance companies—WellPoint, Golden Rule (owned by United Health) and Assurant—rescinded more than 20,000 policies over five years and refused to pay for more than $300 million in medical expenses.

 
In many cases, insurers cancelled policies of patients who unknowingly had prior medical conditions they were never informed of by doctors. Executives of the three insurance companies who testified at the subcommittee hearing refused to commit to only canceling policies of patients who lie about their health on insurance applications. 
 
This refusal sparked an angry call from the advocacy group Consumer Watchdog for Congress to ban any health insurance employee from receiving bonuses for canceling, delaying, or denying necessary medical care to patients.
-Noel Brinkerhoff
 

Comments

Leave a comment