People whose policies were canceled by California health insurers will have a chance to win back their coverage and be reimbursed for outstanding medical bills. The state's Department of Managed Health Care will reopen policies dropped over the last four years by the state's five major insurers and submit them for reconsideration to an independent arbiter. Those determined to have been wrongly canceled would be reinstated, and the insurers would be responsible for medical bills incurred while patients were without coverage, said department representatives.