Committee Holds Hearing on Terminations of Individual Health Insurance Policies

The Committee on Oversight and Government Reform is holding a hearing titled, “Business Practices in the Individual Health Insurance Market: Terminations of Coverage” on Thursday, July 17, 2008, in 2154 Rayburn House Office Building.

The hearing will examine the practice of “post-claims underwriting.” This is the practice of insurance companies retroactively cancelling individual health insurance policies after policyholders submit expensive claims, such as claims to treat illnesses like cancer or serious injuries. The insurance company then returns the premiums paid by the policyholders and denies the claims submitted by providers, leaving the policyholders with huge unpaid bills, as if they were never insured. A preliminary transcript of this hearing is now available.

The following witnesses are expected to testify:

Panel I

• Keith and Heidi Bleazard, Logan, Utah
• Dale Bonner, California Secretary of Business, Transportation and Housing Agency
• Kevin Lembo, Connecticut State Healthcare Advocate

Panel II

• Abby Block, Director, Center for Drug and Health Plan Choice, Centers for Medicare and Medicaid Services

Panel III

• Stephanie W. Kanwit, Special Counsel and Healthcare Consultant