As more Americans buy individual health insurance, states are acting to make sure insurers don’t cancel the plans without fair cause, USA Today reports. Plans can be canceled if applicants misreport their medical history, whether accidentally or on purpose. But amid complaints that companies are cutting the plans unjustly, legislators across the country are working to impose stricter laws to protect consumers.
Cancellations are no small potatoes: they require consumers to pay for all past care, even if insurers had previously approved and covered it. But lawmakers in states including Connecticut, California, and New Mexico are pushing for more government surveillance of the practice. Insurers claim a few cuts are needed to keep other clients from footing the bill for fraud; but “there are abusive practices out there,” says an analyst.