Insurance company reverses decision to pull coverage from disabled man

By Jim Acosta and Bonney Kapp

CNN

WASHINGTON (CNN) - Disabled and suffering from muscular dystrophy, Ian Pearl was just weeks away from losing his health insurance.

His New York-based carrier, Guardian Insurance, had canceled Pearl's family policy as part of a company decision to drop scores of its older small group plans in three states.

But after a public outcry over Guardian's decision, the company announced Thursday it is reversing its decision and restoring Pearl's policy.

Part of the outcry stemmed from an internal Guardian company e-mail which was unearthed by Pearl's attorney.

That e-mail referred to the Pearl family policy as a "dog" that the company could "get rid of."

In an exclusive on-camera interview with CNN's American Morning his home in Southwest Ranches, Florida, Pearl said he was deeply offended by the e-mail.

"I want to know myself and others like me who depended on this policy who were paying premiums and did nothing wrong... (are) suddenly targeted as dogs because we are disabled," Pearl said "Disabled people are not dogs."

Pearl's care is estimated to cost $1 million dollars every year. He receives 'round the clock care from an in-home nursing staff.

In a statement, Guardian's president Dennis Manning admitted the company was wrong.

"Insurance companies are comprised of human beings and sometimes we make mistakes. This was one of them, but we also learn from those mistakes and we seek to correct them," Manning said.

Guardian also apologized to Ian for the e-mail that called his policy a "dog."

After battling the insurer in court for over a year, Pearl's mother, Susan, was stunned by the company's reversal. "I am very encouraged that Guardian is releasing this statement and is acknowledging its misconduct," Mrs. Pearl said.

Pearl's father along with his attorney, John Fried, plan to meet with Guardian officials at the company's headquarters on Friday to discuss the restoration of the family's policy.

Ian Pearl's story may now lead to a change in New York state law. A spokesman for the New York State Senate says lawmakers are currently drafting legislation, tentatively called "Ian's Law," which would prevent insurers from canceling whole lines of coverage for the purpose of dropping high-cost policy holders.