From Legal Explanations.com comes a definition of Rescission
Rescission(n) Rescission is the mutual agreement between the partied to an agreement or contract, deciding to nullify, cancel or otherwise terminate the agreement entered among them and restore the position prior to that agreement
Source Legal Explanations.com
Most folks have never heard rescission in their daily lives, but it impacts them more than they know. Consider the three day grace period on a lot of major purchases. Consider 30 day money back guarantees. Both of these are examples of rescission, which protect you against high pressure sales, bad faith, crappy products, and not having to pay for something that just is not going to work for you. This is the right of rescission, which was made into the law of the land in the Consumer Credit Protection Act of 1968. The Health Insurance Industry however looks at it as a 2 YEAR get out of coverage/payment card.
More Bad Faith
The LA Times reports that Health Net, one of the largest Health insurers in California has been found to have breached their contract and displayed bad faith to the tune of $9 Million bucks.
Health Net ordered to pay $9 million after canceling cancer patient’s policy
The Money Shot
“At the arbitration hearing, internal company documents were disclosed showing that Health Net had paid employee bonuses for meeting a cancellation quota and for the amount of money saved.”
“It’s difficult to imagine a policy more reprehensible than tying bonuses to encourage the rescission of health insurance that keeps the public well and alive,” the judge wrote.
Link to .pdf of the Bates Arbitration Decision
That Health Care Insurance is considered an Industry like making ground beef or cars should cause danger music to play in your ears.
The Politics of Health Care
The current Democratic Presidential Candidates both agree we need health care. Both of them however are blinded by the belief that the Insurance Industry is the One True Way.
Hillary Clinton says that Health Insurance needs to be Mandatory. This is an ass backwards idea of universal health care. The idea is that with everybody covered, the cost of care and insurance will go down, and we will all live happily ever after, or at least through the next re-election cycle.
Barack Obama is offering National Insurance which sounds good, but is still predicated on the Health Care Insurance Industry managing it.
The funniest or most tragic point of both plans is that they are modeling their plans on the coverage that members of Congress get. Which are outstanding plans, that we are paying for already.
Both of these candidates are living under the delusion that the Health Care Industry is actually concerned about health care, and that economies of scale will bring us to the promised land of a country of Shiny Happy Healthy People.
Why Neither of these Plans will Work
Let me set the stage for you with a couple of little know facts.
The Insurance Industry is Exempt from Antitrust. Antitrust is where companies in the same industry compare notes, pricing, and other information. In every other business in the US this is Illegal. But the insurance industry has massive databases of information, including pricing, coverage and information on anybody who has ever paid a single premium for insurance of any type.
They own MIB which warehouses this information.
In reality this is the first stop in denying coverage and or canceling your coverage.
Pricing Information. The Health Care Industry has another database used to determine payments to not only plan providers, but also everybody who may provide health care.
Yet Health Care Insurance neither insures very well, create cost savings, or is affordable.