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Will healthcare reform prevent retroactive health insurance cancellation?

Perhaps you have read media reports of insurance companies retroactively cancelling coverage of critically sick or injured policy holders after finding mistakes or omissions in their policies. In many of these cases, the medical condition omitted had nothing to do with the condition being treated or the policyholder had no knowledge of the condition when applying for insurance.
In some of these cases insurance companies have been accused of looking for employer or beneficiary mistakes or oversights to avoid paying for expensive treatment that policyholders thought were already covered. People who thought they had coverage instead faced bankruptcy or were forced to forgo much-needed treatment.
Under the Affordable Care Act, insurance companies can no longer retroactively cancel insurance coverage unless you deliberately lie or omit information about your condition, symptoms, or treatment received, or you fail to pay your premiums. If you or any other member of your family covered by the policy (for individual policies) or your employer (for group coverage) makes an honest mistake or omission on your application or other paperwork, such as a change in status (for example, divorce), it will no longer be grounds for cancellation as long as you have paid your premiums in full and on time. However, be aware that your coverage can be cancelled going forward if, for example, your employer realizes a mistake or oversight, such as an employee change in status from full- to part-time employment.
If an insurance company does decide to cancel your policy, they must give you at least 30 days’ notice to appeal or find other insurance. This rule applies to individual policy or group plan years that begin on or after September 23, 2010.

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Important: This content reflects information from various individuals and organizations and may offer alternative or opposing points of view. It should not be used for medical advice, diagnosis or treatment. As always, you should consult with your healthcare provider about your specific health needs.