Rescission of Coverage
Under the Patient Protection and Affordable Care Act (PPACA), a group health plan is prohibited from rescinding coverage except in three circumstances. A rescission is a retroactive termination of coverage. Coverage may be terminated retroactively only in the following circumstances:
- Failure to pay premiums
- Intentional misrepresentation of material fact
If coverage is to be rescinded, you must be given at least 30 days advanced written notice that coverage is being terminated retroactively.