UnitedHealthcare ends use of rescissions ahead of implementation date

UnitedHealthcare, a UnitedHealth Group (NYSE: UNH) company, has ended its limited use of rescissions effective immediately, except in cases of fraud or intentional misrepresentation of material fact. This change in policy is well ahead of the September 23, 2010 implementation date as required in the recently passed health reform legislation.

“We continue to find ways to ensure that the new health care reform law can be implemented effectively for the benefit of all Americans and achieve broader access to quality health care.”

The company also announced that it is aggressively seeking outside vendors and will be instituting independent, external third party review in the near term.

UnitedHealthcare's action on rescissions is consistent with the company's recent announcement to offer extension of existing coverage for college graduates ahead of the legislation's September 23, 2010 effective date.

"In the spirit of the recently passed health reform legislation, UnitedHealthcare moved quickly to eliminate the practice of rescissions, except in cases of fraud or intentional misrepresentation of material fact," said Gail Boudreaux, president of UnitedHealthcare. "We continue to find ways to ensure that the new health care reform law can be implemented effectively for the benefit of all Americans and achieve broader access to quality health care."

Source UnitedHealthcare