Recissions allowed in Georgia: New bill to stop cancellations of health insurance policies

Republican Senator Preston Smith recently introduced 2 health care bills into senate. One is designed to allow small businesses to band together to insure their workers as a single group (in a bid to obtain cheaper rates for group insurance).

The second bill Senator Smith proposed aims to prevent insurers from canceling policies and refusing claims based on contract misstatements or innocent omissions. Insurance companies feel this gives people the ability to "lie" about their health risks / pre-existing conditions without fear of losing their insurance coverage

Health care on agenda in state Senate  | ajc.com

Kirkland McGhee, vice president and regional counsel for Kaiser-Permanente, said instead of saving dollars, the bills would ultimately increase costs to consumers.

“If I don’t know what the risks are, I charge you more,” he said. “Preston Smith is making it more difficult for individuals to get more coverage.”

But Preson Smith says Georgia is one of only a handful of states that still allow recissions or cancellation of health insurance policies based on errors, omissions and misstatements.