The only conceivable manner to offset the rapidly rising costs of health care services is to obtain valid health insurance quotes, select a health insurance provider that offers the necessary coverage at an affordable premium, and purchase a policy that indemnifies the policyholder in the event of an illness. Health insurance provides personal security and peace of mind; it assures financial liability indemnification in the event of a medical crisis. Before the Health Reform Act was signed into law, health insurance coverage rescissions were a major concern.

A House of Representatives investigations committee proved over five-year period the health insurance coverage for 20,000 policyholders was rescinded. Of the millions of policies issued this seems a minuscule number, but for the thousands who had coverage rescissions, it meant devastating financial consequences. This legislation places severe limitations on health insurance policy coverage rescissions, which unequivocally is an advantage to policyholders.

Prior to the enactment of the Health Reform Act, health coverage recessions were common and customary. Health insurance providers alleged that this recourse was necessary in order to exercise some measure of control when policyholders have misrepresented medical information, omitted critical areas or incidents in the client's medical history, or fabricated medical history on the application that would have prompted underwriting to decline health insurance coverage initially. Insurers defended their practice of customary coverage rescissions as a way to exclude policyholders who fraudulently obtained health insurance indemnification by lying or deliberately misrepresenting their medical histories.

The Health Reform Act places consequential limitations on health insurance rescissions; policies may not be terminated for any reason other than fraud. However, the regulation affects only group health insurance and not private insurance companies. Furthermore, the insurance company is required to give a thirty-day notice before the policy is terminated. This is a landmark decision; previously insurers eagerly provided health insurance quotes to prospective policyholders, rapidly issued polices in order to initiate premium collection. Later, when a substantial claim was filed, to avoid payment, the company would use any possible reason to initiate coverage rescissions. The coverage was cancelled without notice. One major insurer admitted to utilizing computer algorithms to develop a list of conceivable areas that a policyholder may have omitted from the application, such as an orthodontic abnormality such as an overbite, although often these inquiries were not a part of the application.

Prior to the enactment of the Health Reform Act, health insurers were permitted to rescind coverage for contrived and fabricated reasons, as of June, 2010 policyholders are protected from unwarranted health insurance recessions and have te peace of mind of being financially protected.