“I have not read the article, but carriers do this when there is fraud in the inception of the contract.”
That would be my understanding too.
Probably fraud in the inception of the news article for not mentioning that little detail. In the meantime, everyone here is hyperventilating about the evils of Obamacare - kind of like chasing a banner while being stung by bees. So the news writer had done his job in the propaganda war.