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Insurers agree to comply with intent of new health care law

By the CNN Wire Staff
Health and Human Services Secretary Kathleen Sebelius warned health insurers to not look for loopholes in new law.
Health and Human Services Secretary Kathleen Sebelius warned health insurers to not look for loopholes in new law.
STORY HIGHLIGHTS
  • Health insurance companies said they won't try to find loopholes in new law
  • Sebelius's letter warned against efforts to avoid the new law's intent
  • Provision involving coverage for kids takes effect on September 23
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Washington (CNN) -- President Obama won a key concession from the health insurance industry Tuesday as the main lobby group said providers would comply with new regulations that will prevent the denial of coverage for children due to pre-existing conditions.

In a letter to Health and Human Services Secretary Kathleen Sebelius, the president of America's Health Insurance Plans -- Karen Ignagni -- said the nation's insurance companies would not try to find loopholes in the new health care law.

Sebelius had sent a letter to Ignagni on Monday warning against any efforts by health insurers to avoid the new law's intent to halt the industry practice of denying coverage for children with pre-existing conditions.

In response, Ignagni's letter said the industry would fully comply with regulations being drafted by Sebelius to implement the new law.

The provision involving coverage for kids takes effect on September 23, six months after Obama signed the bill into law, Sebelius said.

 
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