Supreme Court won't review Montana ban on 'discretionary clause'

A Montana insurance rule that prevents state health insurers from using policy language that gives them wide power to deny coverage will remain on the books now that the U.S. Supreme Court has declined to hear a case challenging it brought by Standard Insurance Co. of Portland, Ore., reports the Missoulian. Former state Auditor John Morrison instituted the ban in 2003 on what is known as the "discretionary clause" in group health and disability insurance policies in Montana. Standard Insurance argued that federal law won't allow states to create such bans. Coverage disagreements between consumers and insurers likely will be more costly and take longer without the discretionary clause in place, the company says. Article

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