The untimely disappearance of Sally Marrari’s medical coverage goes a long way toward explaining why insurance companies are cast as the villain in the health-care reform drama.

“They said I never mentioned I had a back problem,” said Marrari, 52, whose coverage with Blue Cross was abruptly canceled in 2006 after a thyroid disorder, fluid in the heart and lupus were diagnosed. That left the Los Angeles woman with $25,000 in medical bills and the stigma of the company’s claim that she had committed fraud by not listing on a health questionnaire “preexisting conditions” Marrari said she did not know she had.

By the time she filed a lawsuit in 2008, she also got a diagnosis of pancreatic cancer and her debts had swelled beyond $200,000. She was able to see a specialist by trading office visits for work on the doctor’s 1969 Porsche at the garage she owns with her husband.

This outrageous behavior by insurance companies happens way too often in this country. It’s an outrage and it’s why we need reform. Insurance companies want to increase profits, so they screw over patients by canceling their policies when they need it most.

In the past 18 months, California’s five largest insurers paid almost $19 million in fines for marooning policyholders who had fallen ill. That includes a $1 million fine against Health Net, which admitted offering bonuses to employees for finding reasons to cancel policies, according to company documents released in court.

If health care reform implodes this year, the administration could ratchet up the pressure by having the Justice Department investigate these companies for fraud and potential RICO charges. There was a clear conspiracy to screw over patients, and they ought to be held accountable.

This also highlights why it’s important to pass reform with or without the public option. Insurance reform would benefit millions of Americans by protecting them from these practices.