October 20, 2009
Insurer to cut lines of coverage to avoid paying high-cost claims.
The Washington Times (10/14, Ehart) reports that New-York based insurer Guardian Life, "legally barred from discriminating against individuals who submit large claims...simply canceled lines of coverage altogether in entire states to avoid paying high-cost claims." In an email, according to the Times, one Guardian "executive called high-cost patients...'dogs' that the company could 'get rid of.'" In July, "a federal court quickly ruled that the company's actions were legal, so on Dec. 1, barring an order by" HHS, such high-cost patients will lose their benefits. The Times notes that patients have petitioned that the insurer's actions violated HIPAA "in a letter to HHS Secretary Kathleen Sebelius on Oct. 5, with support from...their congresswoman, Rep. Debbie Wasserman Schultz, Florida Democrat, but have not heard back."
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