Title 42, The Public Health and WelfareRelease 119-110
§300gg–12 Prohibition on Rescissions
Title 42 › CHAPTER 6A — PUBLIC HEALTH SERVICE › SUBCHAPTER XXV — REQUIREMENTS RELATING TO HEALTH INSURANCE COVERAGE › Part A — Individual and Group Market Reforms › Subpart II — Improving Coverage › § 300gg–12
Summary
Group health plans and insurers must not cancel someone's coverage after they are enrolled. The only exception is fraud or knowingly lying about an important fact; any cancellation must give advance notice and follow section 300gg–2(b) or 300gg–42(b).
Full Legal Text
Title 42, §300gg–12
The Public Health and Welfare, Source: USLM XML via OLRC
A group health plan and a health insurance issuer offering group or individual health insurance coverage shall not rescind such plan or coverage with respect to an enrollee once the enrollee is covered under such plan or coverage involved, except that this section shall not apply to a covered individual who has performed an act or practice that constitutes fraud or makes an intentional misrepresentation of material fact as prohibited by the terms of the plan or coverage. Such plan or coverage may not be cancelled except with prior notice to the enrollee, and only as permitted under section 300gg–2(b) or 300gg–42(b) of this title.
Legislative History
Notes & Related Subsidiaries
Editorial Notes
References in Text
section 300gg–2(b) of this title, referred to in text, was in the original a reference to section “2702(c)” of act
July 1, 1944, which was translated as meaning section 2703(b) of act
July 1, 1944, to reflect the probable intent of Congress. section 2702(c), which is classified to section 300gg–1 of this title, relates to special rules for network plans, while section 2703(b) specifies the reasons for which a health insurance issuer may nonrenew or discontinue health insurance coverage offered in connection with a health insurance coverage offering in the group or individual market. section 300gg–2(b) also parallels section 300gg–42(b) which appears in the same context in this section as the reference to section 300gg–2(b).
Prior Provisions
A prior section 300gg–12, act
July 1, 1944, ch. 373, title XXVII, § 2712, as added Pub. L. 104–191, title I, § 102(a), Aug. 21, 1996, 110 Stat. 1964, which related to guaranteed renewability of coverage for employers in a group market, was renumbered section 2732 of act
July 1, 1944, amended, and transferred to subsecs. (b) to (e) of section 300gg–2 of this title, by Pub. L. 111–148, title I, §§ 1001(3), 1563(c)(9), formerly § 1562(c)(9), title X, § 10107(b)(1), Mar. 23, 2010, 124 Stat. 130, 267, 911. Another prior section 2712 of act
July 1, 1944, was successively renumbered by subsequent acts and transferred, see section 238k of this title.
Statutory Notes and Related Subsidiaries
Effective Date
Section effective for plan years beginning on or after the date that is 6 months after Mar. 23, 2010, see section 1004 of Pub. L. 111–148, set out as a note under section 300gg–11 of this title.
Reference
Citations & Metadata
Citation
42 U.S.C. § 300gg–12
Title 42, The Public Health and Welfare
Last Updated
Sep 23, 2026
Release point: 119-110