Governor Schwarzenegger has signed a measure that bans health insurers from rewarding employees for cancelling policies. At the same time, the governor's staff has drafted a bill some say would make it easier for insurers to terminate coverage. KPBS Reporter Kenny Goldberg has the story.
The proposed measure would allow insurers to cancel a policy, if they later found a member omitted some of their medical history on their application. Termination would no longer depend on the insurer proving a member had lied or intentionally misled the company.
Jerry Flanagan is with the non-profit group Consumer Watchdog .
Jerry Flanagan: That's gonna really make a really horrible change for patients in the market. And frankly, it's indefensible based on the past statements the governor's office has made. But in fact, that's what the legislation would do.
A governor's spokesman says if it's too difficult for companies to cancel policies, they may pull out of the individual health insurance market. Flanagan says the business in California is too profitable for insurers to drop.
Kenny Goldberg, KPBS News.
