I heard this has been going on but thought it was illegal:

http://tinyurl.com/uyrdp

Yes, insurance companies only provide health coverage to people that don’t need it! Gosh, this is so disheartening:

“…Blue Cross spokeswoman Shannon Troughton said rescission, though used infrequently, is a lawful tool for insurers who believe members have misrepresented their health status…”

From Wordnet:
rescission
n : (law) the act of rescinding; the cancellation of a contract and the return of the parties to the positions they would have had if the contract had not been made; recission may be brought about by decree or by mutual consent [syn: recission]

Can you imagine what would/will happen as insurance regulators lose their influence and legal authority? Whatever the case, some of this was covered in the aforementioned Remaking American Medicine documentary last night. I was shocked as to how serious the insurance (un)coverage issues are in California.