A state appeals court has ruled health insurers cannot cancel policies for mistakes on applications after medical claims have been filed. Consumer advocates say the practice is all too common in California. KPBS reporter Kenny Goldberg has more.
Thousands of Californians have had their health insurance terminated after they submitted a claim. Insurers argue they have the right to cancel a policy if a person made a mistake on their application. The appeals court says terminating a plan after a claim is filed is illegal.
Bryan Liang is with the California Western School of Law .
Liang : This is really an important decision for patients' rights, because they're doing everything in good faith. You can't let the insurers then turnaround and decide, well, we're just going to find anything we can in the application to pull the policy.
The ruling could invalidate thousands of cancellations. State regulators have fined Blue Cross , Kaiser , and HealthNet for illegally terminating policies.
Kenny Goldberg, KPBS News.
