According to the article “only about 1 percent of individual policyholders” are affected by rescission. The good news for those covered by your employer is that they don’t happen with employer sponsored group plans.
Just because you sign a release that allows insurers access to your medical records don’t think they will actually take a look. According to Paul Roller, a former Alaskan insurance commissioner, “The company takes the position, 'We have a clean application so there's no need to get records,' " he says. The insurer, in effect, says, 'If I know about a condition and you get sick, I'll have to pay. So don't tell me.'"
Avoid rescission at all costs by telling all conditions “you’ve ever been seen or treated for.” Another precaution to take is “if you've been with a health plan for two years or more, be cautious about switching carriers. Rescissions are typically allowed only within the first two years of a policy.” Although rescission only happens to a very small percentage of people you don’t want to be up to your neck in medical debts. Do you know someone that has gone through this type of experience?
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