Media attention has focused extensively on the various federal health care proposals, revisions, trade-offs, as well as both partisan and non-partisan debate on Capitol Hill over the past year as the nation moves closer towards a compromise package of solutions, some less than ideal, some less than the original vision articulated in the 2008 campaign, and certainly all with a substantial price tag. With the House proposal, H.R. 3962, being the first one passed in early November, the Senate worked down to the Christmas Eve “wire”, gaining sufficient votes to move their H.R. 3590 forward. Work remaining in early 2010 now involves reconciliation efforts by the House and Senate to resolve the differences between the two different health bills. Both public option availability and health insurance exchange provisions are key examples of differences, with the House version including the former as an option, as well as a national insurance exchange. The Senate version has no public option and has addressed state health insurance exchanges. Common concerns addressed by both bills include expansion of the ranks of those insured, extending the age of dependents eligible under a parent’s policy, pre-existing conditions in the underwriting and rating processes, and policy rescissions.
Given the components of both bills that address policy rescissions, it is interesting to note that in early December the Illinois Department of Insurance issued CB 2009-09 which reinforces its existing state laws concerning policy rescissions and clarifies the required processes insurers must follow when responding to a filed rescission complaint. Underwriting guidelines submitted must not include redacted or deleted material and must include the provisions relied upon by the insurer in making the rescission. While the health insurance federal debate and industry input moves to the next level in 2010, states will continue to have the opportunity to enact, adopt, or reaffirm consumer protection and health insurance availability provisions related to rescissions, post-claims underwriting, and dependent eligibility as they did this year.
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