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In reply to the discussion: Nevada family reportedly faces $1.2M in medical bills over ObamaCare typo, confusion [View all]Dustlawyer
(10,539 posts)unknown complications and the bill started climbing, they tried to avoid paying by saying we had never called to add him to the policy. I called my agent and the home office from the delivery room. My agent called the home office and recorded it. They backed down until the doctors figured out what was wrong with my son, he had Cystic Fibrosis. The insurance company knew they would pay out a lot over his lifetime, so a week after we had learned the terrible news they canceled again saying we had committed fraud in the application (we had not)!
After getting an attorney specializing in EURISA (sp), a Federal statute governing most insurance plans and he found a possible loophole, they backed down again. The problem is that insurance companies can commit Bad Faith under this statute, but the most you can recover is making them pay per the policy and pay your attorneys fees. No punitive damages, nothing to dissuade them from making the attempt at not covering an expensive claim. This is why they pull this shit on people when the people need them most!