Rescission Bill Has Fatal Flaw

Re “Insurance bill sent to governor” (Capitol & California, Sept. 11): The Bee’s coverage of the Legislature’s approval of a health care insurance rescission bill failed to describe the “litigation-sparking” amendments that undercut the bill’s reasonable goals - and the fact that they were stuck in by a major behind-the-scenes player in the legislation: the personal injury lawyers.

The trial lawyer amendments gave the state review organization — which would deal only with documents, and not take testimony or ask questions — the impossible task of determining whether a health plan enrollee “intentionally misrepresented” material information on the application for health care. This crippling of the review organization’s ability to conduct a useful review would propel virtually every rescission approval into court.

Lawmakers should have restored this proposal to its original aim of bringing prompt, fair decision- making to this area of health care. Their failure to do so should bring a governor’s veto — just as happened to last year’s version.

Read the full article here.