Health Insurance Cancellation Illegal Under Obamacare

 health insurance cancellation

Health Insurance Cancellation Illegal?

Are Health insurance cancellations legal? Since October 1st, millions of Americans have had their health insurance policies terminated by insurance companies. Last Thursday, President Obama made a statement about fixing the ACA and how he will prevent insurers from canceling policies. Apparently, members of the executive/legislative branch are finally reading the very law that they actually created. Under federal law, it is illegal for insurers to cancel your policy. This prohibition has been in federal law since March 23, 2010. Federal law 42 USC 300gg-12  specifically says:

A group health plan and a health insurance issuer offering group or individual health insurance coverage shall not rescind such plan or coverage with respect to an enrollee once the enrollee is covered under such plan or coverage involved, except that this section shall not apply to a covered individual who has performed an act or practice that constitutes fraud or makes an intentional misrepresentation of material fact as prohibited by the terms of the plan or coverage. 
(July 1, 1944, ch. 373, title XXVII, §2712, as added Pub. L. 111–148, title I, §1001(5), Mar. 23, 2010, 124 Stat. 131.) PL 111-148 = Patient Protection and Affordable Care Act.

What we have been witnessing lately should not have happened at all! What we are seeing at the executive/legislative level are individuals who are finally paying attention to the federal law that they actually make. There is a great line in “The Cosby Show” that sheds some light on this. The line comes from an episode (“Attack of the Killer B’s”, line said 4:14 into episode) where Cousin Pam and a friend are studying for an exam where she has to describe the three branches of government.  The line says: “The legislative, they make the law. The judicial, they interpret the law. And the executive, they ignore the law!” This great line winds from this television classic winds up being very true. Especially in this particular case.

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Below, you will find a listing of which insurance companies have been canceling policies.

Blue Cross Blue Shield

# Cancelled      State                              Source

87,000                 AL                                 (Source 1)

5,360                 AK                                  (Source 2)

10,000                 CA                                 (Source 3)

119,000                  CA                                 (Source 21)

76,000    DC, VA, MD                          (Source 4)

300,000               FL                                  (Source 5)

140,000                 MI                                 (Source 6)

62,000                  MN                              (Source 7)

13,500                   MT                               (Source 8)

160,000                 NC                              (Source 9)

31,600                    ND                                (Source 10)

50,000                  NJ                                   (Source 11)

48,000                  OR                                 (Source 12)

24,000  Philadelphia PA                    (Source 13)

13,000   Lancaster PA                         (Source 14)

66,000               TN                                    (Source 15)

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Total cancellations:       1,205,460

Aetna
7,000                    MD                                       (Source 20)

Coventry
5,615                     MD                                       (Source 20)

CoverTn  (State of TN)
28,000                  TN                                        (Source 16)

Health Alliance Plan
6,000                 MI                                          (Source 17)

HeathPartners
19,000          MN                                            (Source 18)

Humana
3,000            AL                                               (Source 1)

Kaiser
160,000      CA                                              (Source 3)
10,000        CO                                              (Source 19)
5,019          MD                                              (Source 20)
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Total  cancellations:   175,019

 

Medica
50,000   MN                                               (Source 18)
3,173      ND                                                  (Source 9)
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Total cancellations:  53,173

PacificSource
5,000    MT                                                  (Source 8)

PreferredOne
15,000  MN                                                (Source 18)

 

Sanford Health Plan
450       ND                                                   (Source 9)

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Grand total # of cancellations:   1,522,717

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What did stock prices of Aetna,  Blue Cross Blue Shield (trades under WellPoint) and Humana do between October 1 – November 15?

 

Aetna
October 1          –        November 15                    % change
$64.91                        $65.08                      up     0.26%

 

Blue Cross Blue Shield

October 1          –       November 15                     % change

$86.11                         $90.10                       up    4.63%

 

Humana

$95.34                        $98.27                      up     3.07%

 

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Matthew Taber is Chief Operating Officer of Direct Care For Me (www.directcareforme.com), which provides full access to medical care to patients and  100  percent reimbursement to primary care physicians through direct primary care (no insurance necessary) models. Low cost health insurance for business owners and employees. On site health care for employees. Exclusive savings on x-rays, labs, surgery, specialty office visits. See a doctor (family practitioner, internist, ob/gyn, pediatrician) anytime on your smartphone tablet, or computer (telemedicine). Reach him by e-mail at matthew at direct care for me dot com or by phone at 615-669-8347 to sign up today.  

 

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