Blue Shield of California Will Implement Rescission Provision of New Federal Health Reform Law Earlier than Required

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Apr 28, 2010, 02:40 ET

SAN FRANCISCO, April 28 /PRNewswire-USNewswire/ -- As a not-for-profit health plan that has long advocated for universal healthcare coverage, Blue Shield of California is committed to implementing the new federal health reform law (Patient Protection and Affordable Care Act, or PPACA) as effectively as possible.

Toward that end, last week we announced that we would allow dependents under age 26 to remain under parents' policies beginning June 1, 2010, well ahead of the September 23, 2010 requirement under the new law.

We will accelerate implementation of the rescission provision of the new law, as well. We will implement the new rescission standard prescribed by the PPACA in May, even though these requirements do not take effect until September 23rd. Under the PPACA, rescissions are prohibited unless a covered individual "has performed an act or practice that constitutes fraud or makes an intentional misrepresentation of material fact..."

An article by Lisa Girion in today's Los Angeles Times inaccurately reports our position on rescission despite the fact that we provided her with a statement of our position in writing. We are seeking a correction from the Times.