mr. sassi your opening statement please. >> thank you chairman stupak, ranking member wilbon and members of the committee for inviting me to testify before you today. i am brian sassi, president ceo of the consumer division of wellpoint. we understand the impact these decisions can have on individuals and families. we have put in place the theroux process with multiple steps to ensure that we are as there and accurate as we can be in making these difficult decisions. i want to emphasize that rescission is about stopping misrepresentation that contribute to the spiraling healthcare costs. by some estimates healthcare fraud in the u.s. exceeds $100 billion, and now large enough to pay for covering nearly half the 47 million uninsured. recission as a tool employed by wellpoint and other health insurers to protect the vast majority of policyholders to provide accurate and complete information from subsidizing the cost of those who do not. the bottom line is rescission is about combatting caused her

mr. sassi -- >> last question mr. burgess, you are going on. >> regardless of claims history in the population would she be willing to make a product available? >> i have to agree with my colleagues in the current voluntary individual market, we couldn't guarantee issue policies where people could jump in and out of the insurance market. we have had experience of states that have implemented guarantee issue without enforceable personal coverage mandate and unfortunately that has resulted in significant cost increases that have to be borne by others in the individual markets so the answer would be no. >> mr. chairman, you've been generous with your time. again, i will stress this is going to take creative thinking now sidewalks. i don't think you're going to get what you want in the proposal. you're going to get something like the chairman now live at the beginning and i would urge you to think creatively about this because this is the difficulty that leads us where we are today and i can't help you -- >> questions and

hamm and mr. sassi if you're to hear the witnesses of the individuals that testified, what do you think after hearing that? is that something that -- and again, coming from this at the perspective as a customer of the insurance market at one time and maybe again in the future. i recognize the value that you bring and i want you to be able to continue to do the type of business that you do but you heard the opening comments of the chairman of the subcommittee this morning. there is a move afoot to do things in a way that would be very difficult for you to do business in the future and i for one would not like to see that happen but tell me what your impressions are after hearing the testimony that you heard. >> i would be glad to respond to that and i have to say i felt bad and i have a lot of empathy for the people impacted and i know in my own life i have dealt with the cancer and i just have a lot of sympathy and concern for the people and it's my hope that there will be changes made that this will no

mr. sassi? ms. pollitz? so then let me have you raise your right hand and take the oath. do you swear or affirm the testimony you are about to give is the truth, the whole truth and nothing but the truth in the matter pending before this committee? let the record reflect that the witnesses replied in the affirmative. they are now under the beginning with their opening statement. you have five minutes for an opening statement in you may submit a longer statement for inclusion in the record. mr. hamm if you don't mind will start with you, start from my left and go to the right. >> chairman stupack, congressman waldman, mears of the subcommittee i'm don hamm president and ceo of assurant health. welcome this opportunity to birds is a bait in the hearing today. is the dialogue like this that we can continue to address one of the most challenging issues of our time, providing health insurance coverage for all americans. we appreciate that this subcommittee in congress are committed to finding the ri

hamm, and mr. sassi and mr. collins, after you were here and heard the testimony of the three individuals, who testified, what do you think, after hearing that? is that something that -- and began, i am coming from a perspective of someone who supports the individual insurance market, i was a customer of the individual insurance market at one time and may be again in the future. i recognize the value that you bring. and i want you to be able to continue to do the type of business that you do, but you heard the comments, the opening comments of the chairman of the subcommittee this morning, and there is a move afoot to do things in a way that would be very difficult for you to do business in the future, and i for one would not like to see that happen. but tell me what your impressions are, after hearing the testimony that you heard this morning. >> i would be glad to respond to that, congressman, and i have to say i really felt bad. i have a lot of empathy for the people that are impacted and i know in my own lif

mr. sassi, i left off with you and you had 1400 automatically triggers investigation and mr. hamm, 2,000 things that trigger investigation you provide to the committee, breast cancer, ovarian cancer and brain cancer. why does cancer trigger an investigation. >> what triggers the -- >> why does cancer trigger the investigation. >> i will answer, what triggers the investigation are the types of medical conditions of a chronic nature, where there is a high probability that the condition would have pre-existed at the time the application. it is not based on the costs of the claim. it is based on the medical condition. in fact, the people that make the rescission decision are not aware of the cost of claim. it is all about -- >> if it's the medical conditions, the medical condition, then before you sign them up, why don't you get all the medical records and find it then h why do you wait until there is a claim? >> if we were to receive all of the medical records at the time of application, that would delay the process, significantly, delaying people's access to health care, and, w

mr. brian sassi, am i saying that right? sassi who is the president and chief executive officer of wellpoint inc. and ms. karen pollitz who is the research professor georgetown university health policy institute. welcome to all of our witnesses. is the policy of the subcommittee to take your testimony under oath. please bid bison of the right and the rules of the house to be it buys the council during your testimony. kiewit to be represented by counsel during your testimony? mr. hamm you would? any time during the questions if you want to get advice from counsel, just let us know and we will allow the. council cannot testify but the cannon fisa. mr. collins? mr. sassi? ms. pollitz? so then let me have you raise your right hand and take the oath. do you swear or affirm the testimony you are about to give is the truth, the whole truth and nothing but the truth in the matter pending before this committee? let the record reflect that the witnesses replied in the affirmative. they are now under the beginning with their opening st

. >> mr. sassi? >> we also oppose the public plan. >> i don't want to be the one to have to break this to you but the reality is you are very likely to get a public plan and not likely to get a deal struck by a hip at the white house. i would urge you to think outside the box on this when there are ways that we can solve this problem without going to a public plan, in my opinion and without leaving so many people uninsured inlet bell leaving so many people that fall to the cracks. clearly the situation as it stands now is unstable and untenable and we cannot continue it but you guys of that to be able succumb to the table with some innovative thinking on how we provide coverage to that segment of the population that is full mobile. we don't need to turn the whole system on its head is to cover that ten of 15% that is right now left out but that is what we are going to do if you don't help us with this and a fallback position i promise you it's a government-run plan and that is what you are going to g