Health insurers refuse to limit rescission of coverage

Susan Walsh / Associated Press
An insurance company "is supposed to honor its commitments and stand by you in your time of need," Rep. Bart Stupak (D-Mich.) said.
Lawmakers ask three executives if they'll stop dropping customers except where they can show "intentional fraud." All say no.

By Lisa Girion
June 17, 2009
Executives of three of the nation's largest health insurers told federal lawmakers in Washington on Tuesday that they would continue canceling medical coverage for some sick policyholders, despite withering criticism from Republican and Democratic members of Congress who decried the practice as unfair and abusive.

The hearing on the controversial action known as rescission, which has left thousands of Americans burdened with costly medical bills despite paying insurance premiums, began a day after President Obama outlined his proposals for revamping the nation's healthcare system.

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