H the K wrote:

HHS: Insurance Companies Encourage Employees to "Revoke Sick People's
Health Coverage"

By David S. Hilzenrath
Washington Post

You might have known that insurers can deny health coverage based on
preexisting medical conditions, but here’s something else to worry
about: They can take away the coverage you thought you had when actually
need it, the government says.

The Department of Health and Human Services put a spotlight on that
practice Tuesday in its continuing campaign to build support for an
overhaul of health insurance.

“When a person is diagnosed with an expensive condition such as cancer,
some insurance companies review his/her initial health status
questionnaire,” the HHS said in a posting at HealthReform.Gov. In most
states, insurance companies can retroactively cancel individuals'
policies if any condition was not disclosed when the policy was
obtained, "even if the medical condition is unrelated, and even if the
person was not aware of the condition at the time.”

“Coverage can also be revoked for all members of a family, even if only
one family member failed to disclose a medical condition,” HHS said.

Your failure to disclose requested and relevant information to obtain an
insurance policy is called fraud.