CHICAGO--(BUSINESS WIRE)-- Health Care Service Corporation (HCSC) today responded to a request from Capitol Hill that insurers end the practice of rescissions except in cases of fraud or material misrepresentation.
“We want to clarify for our members and the communities we serve that we already have a standard practice in place that individual policies are rescinded only in the case of fraud or material misrepresentation,” said Pat Hemingway Hall, president and CEO of HCSC.
In addition, the letter released by several House Committee Chairs asks that insurance companies institute an independent third-party review whenever a policy is to be rescinded or canceled.
“While this is not a mandate, we wanted to let lawmakers know that we are actively working to implement a third-party review process,” added Hemingway Hall
As the largest customer-owned health insurer in the country, HCSC’s efforts are significant because they take additional steps beyond reform mandates to protect both new and existing members. HCSC and its Blue Cross and Blue Shield Plans in Illinois, New Mexico, Oklahoma and Texas remain committed to working with the department of Health and Human Services to ensure that health care reform is implemented effectively.
About Health Care Service Corporation
Health Care Service Corporation is the country’s largest customer-owned health insurer and fourth largest health insurer overall, with 12.4 million members in its Blue Cross and Blue Shield plans in Illinois, New Mexico, Oklahoma and Texas. A Mutual Legal Reserve Company, HCSC is an independent licensee of the Blue Cross and Blue Shield Association. HCSC has a rating of AA- (Very Strong) from Standard and Poor’s, A1 (Good) from Moody’s and A+ (Superior) from A.M. Best Company. For more information, visit www.HCSC.com.
Ross Blackstone, 972-766-1735
KEYWORDS: United States North America Illinois
INDUSTRY KEYWORDS: Health Public Policy/Government Healthcare Reform Other Health Public Policy Professional Services Insurance