The Affordable Care Act stops health plans from retroactively
canceling your insurance coverage solely because you or your employer
made an honest mistake on your insurance application.
What This Means for You
Before
the health care law, if your insurance company found that you’d made a
mistake on your insurance application, the insurance company might “rescind”
your benefits — that is, declare your policy invalid from the day it
began. Your insurance company might also ask you to pay back any money
already spent for your medical care.
Now, an insurer cannot
rescind your coverage simply because you made an honest mistake or left
out information that has little bearing on your health.
