WellPoint Inc has said that it would not drop customers from health insurance and health care coverage, from May 1 after they get sick. The health insurance major has responded to the pressure from the Obama Administration. The health insurance company announced this major change in its policy after the Democrats wrote to health insurance executives to put a stop to this policy.

Rescission, which is dropping the customers from health coverage after they have fallen ill, is illegal according to the new health reform legislation. Rescission is only legal if it involves fraud or misrepresentation by the customer. The health care reform bill allowed health insurance companies a window of 6 months to comply with it. But WellPoint Inc was pushed by Democrats after a report in the news media that it had used computer algorithm to indentify and drop women with breast cancer investigation. This report In news media has earned a very strong rebuke from the Secretary y of Department of health and human services Ms. Kathleen Sebelius.

America?s biggest health insurance companies such as Humana, Aetna, United Health Group and many others were requested by the lawmakers to ban rescission and make exception only in the case of fraud and intentional misrepresentation with intent to defraud.

The health insurance companies have until the Sept 23, under the health reform act to stop rescission and other practices such has denial of coverage because of pre existing condition.

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