WellPoint Inc. the founder of Anthem Blue Cross of California, and Blue Shield of California has announced that they will not be dropping sick policyholders any more.

This announcement comes at the heels of action taken by Congress and the Obama administration reign in on the practice known as rescission.

These two companies were at the receiving end of immense criticism and had to face tough federal regulation. Owing to this, they declared that they will no longer practice the policy of leaving sick policy holders.

WellPoint Chief Executive, Angela Braly, while referring to the announcement stated that the company’s aim is to comply with the reform and make it work for the citizen of the country and its clients.

Cindy Ehnes, Director of the California Department of Managed Health Care is of the opinion that this move is intended to reach out to consumers. She says that this will reinstate consumer confidence in coverage.

Peter Harbage, healthcare consultant and former advisor to Governor Arnold Schwarzenegger states, "With the sunlight pouring in, insurers have to rethink their strategy. No one is going to buy insurance from a company today if they think that company will just take it away tomorrow. Do you want insurance from a company with a track record for rescission?”