Insurer adopts rules against revoking coverage

UnitedHealth Group Inc., the biggest U.S. medical insurer by sales, adopted new standards on revoking policies for sick customers ahead of the September deadline set by the health-care law passed in March.

Customers will no longer be dropped from policies without evidence of fraud or intentional misrepresentation, UnitedHealth said in an e-mailed statement. The company, based in Minnetonka, Minn., also said it's seeking outside vendors to oversee an external review process.

UnitedHealth joins WellPoint Inc., which made a similar announcement after a letter from congressional Democrats urged seven insurers to "end such abusive practices immediately." U.S. Health and Human Services Secretary Kathleen Sebelius, in a letter to WellPoint, criticized the insurer for revoking the policies of women with breast cancer. The company has denied targeting cancer patients.

"In the spirit of the recently passed health reform legislation, UnitedHealthcare moved quickly to eliminate the practice," said Gail Boudreaux, president of the UnitedHealthcare unit of UnitedHealth, in the statement. "We continue to find ways to ensure that the new health-care reform law can be implemented effectively."