The insurer practice of post-claims underwriting in individual policies "can leave families without coverage and facing substantial medical bills, witnesses told the House Oversight and Government Reform Committee" Thursday. Rep. Henry Waxman (D-Calif.), the committee's chairman, said that "he plans to request documents from health insurers."

Rep. Waxman claimed that "[i]nsurers are using technicalities...to rescind policies after individuals get sick, and accumulate hundreds of thousands of dollars in medical bills." The insurance industry contends, however, that the policy "revocations [are] necessary when they discover that members committed fraud, or misrepresented their health in applying for coverage."

And, according to Stephanie Kanwit, a representative for America's Health Insurance Plans, "[o]nly 0.2 percent of the policies bought by individuals and families directly from health plans are canceled by insurers each year."

Related Links:

- "U.S. to Probe Health Plans That Cancel Sick Members (Update3) ," Avram Goldstein, Bloomberg News, July 17, 2008.