OFA perpetuates myth that Obamacare prohibits rescission of health insurance
The @Obamacare Twitter account, run by Organizing For Action, wants us to believe that Obamacare banned rescission. This is a fairly common Talking Point on the Left:
Of course, guaranteed renewability of individually-purchased health insurance has been the law since 1997. Even before then, as John Goodman of the National Center for Policy Analysis has noted, rescission was extremely rare. It was not “standard practice,” as Matthew Yglesias has falsely asserted. (Yglesias’ egregious error still has not been corrected, by the way.)
Meanwhile, rescission is still legal if an applicant for health insurance commits fraud or intentional misrepresentation of material fact.
Like Jim Treacher says,
Maybe rescission isn’t always a bad thing:
As for the 17-year old girl with celiac disease whose insurance was canceled, she got it reinstated in January 2010. We’re sure the Left would like to give credit to the ACA, but that happened two months before Obama signed it into law.