Sunday, October 5, 2008

Schwarzenegger Vetoes Health Insurance Consumer Protection Bill

By Ethan Calvin

Recently, Governor Schwarzenegger (CA), vetoed a health insurance bill created to protect policyholders from cancellation of their policies. The bill would not have allowed the insurance companies to cancel coverage for a policyholder who had expensive claims that had no independent review.

An independent review process lets insurance providers cancel policies if they can find proof that a policyholder intentionally falsified information on their application. The Associate Press and San Diego Union-Tribune report these facts.

the question was asked, why would Governor Shwarzenegger veto this bill that seems to protect consumers? The AP article cites that he did not approve it because the six provisions he wanted included, were not. The article also states that Shwarzenegger responded, "[The bill was] written by the attorneys that stand to benefit from its provisions."

But one California lawmaker pointed out some of the governor's provisions were already attached to other bills. Critics also accuse Schwarzenegger of flip-flopping on his health insurance initiatives with this veto.

President of the California Medical Association, Dr. Richard Frankenstein, is quoted as saying, "The governor's veto betrays the promise he repeatedly made to Californians to protect them from insurance companies canceling their health insurance when they need it most." people are wondering if something is fishy with this veto. - 15224

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