California Health Insurance Plan Targets Recession Practices

A new california health insurance proposal aims to protect consumers from illegally losing their policies.A new california health insurance proposal aims to protect consumers from illegally losing their policies.

An announcement by state insurance commissioner Steve Poizner says that his office is introducing regulations to clarify current state laws about when companies can rescind a person's coverage.

"Consumers deserve to have their insurance companies hold up their end of the deal, paying out claims and not canceling coverage when it's needed most. Today I am pleased to introduce regulations that will give insurers the guidance they need to follow the law and help prevent illegal rescissions in the first place," said Poizner.

Poizner said that vagueness in current state laws have resulted in some patients losing their coverage after filing claims for medical treatment, adding that his office has worked to restore coverage for about 4,000 customers.

The new regulations include a requirement for insurers to make sure policy applications are accurate in the first place and do not contain confusing health history questions, as well another stating that they must be fully sure an individual misrepresented a detail about their health history before rescinding coverage.

The California health insurance regulations come at a time when the state has been in the news for budget problems that are expected to cost many other people their state-funded coverage. For more on health insurance policies that you can count on, visit InsureMe.com today.