Healthcare CEOs Shoot Themselves in the Foot

Yesterday the House Subcommittee on Oversight and Investigations decided to investigate the practice of recission.  This is when you pay your premiums for years to a healthcare insurer, then get sick, and then have your insurance cancelled.  The insurance industry executives at the hearing did not exactly cover themselves with glory:

A Texas nurse said she lost her coverage, after she was diagnosed with aggressive breast cancer, for failing to disclose a visit to a dermatologist for acne.

The sister of an Illinois man who died of lymphoma said his policy was rescinded for the failure to report a possible aneurysm and gallstones that his physician noted in his chart but did not discuss with him.

….Late in the hearing, [Bart] Stupak, the committee chairman, put the executives on the spot. Stupak asked each of them whether he would at least commit his company to immediately stop rescissions except where they could show “intentional fraud.”

The answer from all three executives: “No.”

Rep. John Dingell (D-Mich.) said that a public insurance plan should be a part of any overhaul because it would force private companies to treat consumers fairly or risk losing them. “This is precisely why we need a public option,” Dingell said.

Even the Republicans on the committee couldn’t defend the insurance company position.  A few more hearings like this and getting a public option into healthcare reform is suddenly going to look like a real possibility.  Nice going, guys.

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