WellPoint, Inc. will suspend the practice of rescinding patients’ coverage May 1, 2010, months in advance of this Fall’s deadline for insurers stop this practice established by the Affordable Care Act. The nation’s largest health insurer announced here its plans to implement the change in its practices regarding individual market rescissions on April 27, 2010.
Beginning this Fall, the Affordable Care Act will prohibit insurance companies from rescinding policies, except in cases of fraud or intentional misrepresentation of material fact. Wellpoint’s termination of individual policy rescissions announced this week comes months ahead of the effective deadline for terminating rescissions contained in the legislation. The ban against rescissions is one of a number of new federal restrictions on health insurers and group health plans enacted as part of the Affordable Care Act scheduled to take effect this Fall. Wellpoint previously announced it also would change its dependent coverage policies to extend the period that a dependent child can remain on his parent’s coverage to age 26 before the deadline required by the Affordable Care Act.
WellPoint’s announcement comes after Health & Human Services Secretary Kathleen Sebelius sent a letter on April 22 urging the company to immediately stop the practice of rescinding coverage for patients who become ill. Wellpoint recently drew criticism from Secretary Sebelius and others for targeting breast cancer victims for rescission of their policies. Secretary Sebelius’ initial letter to WellPoint can be found here or at here.
For Assistance With Health Industry Concerns
If your organization needs advice or assistance with the proposed regulation, preparing or submitting comments on the regulation or with other health care matters, contact Cynthia Marcotte Stamer at (469) 767-8872 or via e-mail here.
Vice President of the North Texas Health Care Compliance Professionals Association, Exempt Organization Vice-Coordinator of the Southern States IRS TEGE Council, a Council Member of the ABA Joint Committee On Employee Benefits Council, Past Chair of the ABA Health Law Section Managed Care & Insurance Section, the former Board Compliance Chair of the National Kidney Foundation of North Texas and former Board President of the Richardson Development Center for Children (now Warren Center), Ms. Stamer has more than 22 years experience advising health industry clients about health care operations, regulatory and compliance, reimbursement, staffing, risk management, public policy and other matters. A popular lecturer and widely published author on health industry matters, Ms. Stamer advises hospitals and other health industry clients about responding to and using these and other quality measures and other related concerns. Ms. Stamer also publishes and speaks extensively on health and managed care industry quality, regulatory, reimbursement, and other operations, risk management and public policy concerns. Her insights on these and other related matters appear in the Health Care Compliance Association, Atlantic Information Service, Bureau of National Affairs, World At Work, The Wall Street Journal, Business Insurance, the Dallas Morning News, Modern Health Care, Managed Healthcare, Health Leaders, and a many other national and local publications. For additional information about Ms. Stamer, her experience, involvements, programs or publications, see here.
Other Recent Developments & Resources
If you found this information of interest, you also may be interested in reviewing some of the following recent Updates available online by clicking on the article title:
- CMS Proposes FY 2011 Acute Care & Long-Term Care Inpatient Policy & Payment Rate Changes
- DEA/DOJ Release Interim Final E-Prescribing Rules
- Joint Commission Revises Medical Staff Bylaw Standard
- TSHHRAE Provides Health Industry Managers Employment Law Update & Other Timely Management Training At April Barnstorm 2010: Creating Effective Leaders Programs
- Medicare Ends Fox Insurance Company Drug Plan Contract As CMS Turns Up Heat on Medicare Advantage & Part D Plan Enforcement & Oversight
- Southern States Collect Largest Share of $162 Million AARA Fund Meaningful Use Development Grants
- AHRO Invites Comments On Project To Develop & Test Hospital Toolkit Intended To Guide Hospitals In Using AHRQ Quality Indicators
- NLRB Orders Union Elections In 31 California Health Care Facilities To Proceed
- IRS To Allow Medical Resident FICA Refund Claims
- Stamer Speaks To Chiefs of Staff About JCAHO Physician Performance Evaluation Requirements
- HIPAA Heats Up: HITECH Act Changes Take Effect & OCR Begins Posting Names, Other Details Of Unsecured PHI Breach Reports On Website
- HHS Delays 2010 HHS Federal Poverty Rate Update To March 1, 2010
- Rising Enforcement and Changing Rules Require Prompt Review & Update of Health Plan Privacy & Data Security Policies & Procedures
- Pfizer To Pay $2.3 Billion For Fraudulent Marketing In Largest DOJ Health Care Fraud Settlement
- Maximum Penalty For Patient Protection Act Confidentiality Breaches To Rise To $11,000
- HHS Delays 2010 HHS Federal Poverty Rate Update To March 1, 2010
- OIG Special Fraud Alert Targets DME Telemarketing
- Federal HEAT & Other Federal Health Care Fraud Efforts Score More Than 15 Successes As OIG Claims $20.97 Billion Saved From Enforcement Activities In December
- HEAT Initiative Snares Health Fraud Related Guilty Pleas of Physical Therapist, Money Launderer and Patient Recruiter In Detroit
- Medicare Paid Physicians More Than $92 Million in Incentives for 2008 Under the Physician Quality Reporting Initiative
- Renal Dialysis Faculties Encouraged to Review Current Protocols for Administering Erthropoiesis-Stimulating Agents
- CMS Publishes Updated FY 2010 Inpatient Rehabilitation Facility Prospective Payment System Final Rule
- Retaliation For Filing HIPAA Complaint Recognized As Basis For State Retaliatory Discharge Claim
- Quest Diagnostics Inc. To Pay $688,000 In Overtime Back Wages Settlement After Misclassifying Systems Employees As Exempt
- Homecare Workers Exempt From FLSA
For More Information
We hope that this information is useful to you. If you need assistance with auditing or defending these or other health care compliance, risk management, transaction or operation concerns, please contact Cynthia Marcotte Stamer, at (469) 767-8872 or to email@example.com. Ms. Stamer has extensive experience advising clients and writes and speaks extensively on these and other health industry and other internal controls and risk management matters.
You can review other recent health care and internal controls resources and additional information about the health industry and other experience of Ms. Stamer here. If you or someone else you know would like to receive future updates about developments on these and other concerns, please be sure that we have your current contact information – including your preferred e-mail – by creating or updating your profile at here or e-mailing this information to here.
©2010 Cynthia Marcotte Stamer. All rights reserved.