We need a massive health reform effort, complete with 1,000 pages of federal legislation, because insurance companies cancel policies when people get sick. This happens all the time.

Right?

Well, it’s a powerful story, but it doesn’t happen all the time. In fact, “recissions,” as they are technically called, usually happen because the person with insurance lied on the application. At least that’s what the insurance companies say.

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The recent work of a Congressional committee found that recissions do take place — at a rate of 4 out of 1,000 policies, at most.

Our own John Graham has written about recissions. See, for example, herehere and here.

Cross-posted from State House Call.

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