Sunday, October 5, 2008

Schwarzenegger Vetoes Health Insurance Consumer Protection Bill

By Ethan Calvin

Governor Schwarzenegger, of California, recently vetoed a health insurance bill that would protect consumers from dealing with canceled policies. The now dead bill would have forbade insurance companies from canceling coverage, had a policyholder made costly claims without an independent review.

The independent review process would allow insurers to cancel policies only if they could prove that customer intentionally lied about their health on their application, reported the Associated Press and the San Diego Union-Tribune.

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.

Dr. Richard Frankenstein, president of the CA Medical Association, states, "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." Many are wondering if something is up with this veto. - 15275

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