Insurer to pay $9M for canceling policy

[one...two...tree 2,762]

Amanda J. Crawford

The Arizona Republic

LOS ANGELES - A breast cancer patient whose medical coverage was canceled by her insurer was awarded more than $9 million Friday in a case against Health Net Inc., one of California's largest for-profit insurers.

The award issued by an arbitration judge was the first of its kind and prompted Health Net to announce it was scrapping its cancellation practices that are under fire from state regulators, patients and the Los Angeles city attorney.

Arbitrator Sam Cianchetti, a retired Los Angeles County Superior Court judge, found that Health Net violated numerous state laws in canceling Patsy Bates' policy and declared the company's actions "despicable."

Cianchetti also blasted the company for tying employee bonuses to the number of policies canceled and the amount of money saved.

"It's difficult to imagine a policy more reprehensible than tying bonuses to encourage the rescission of health insurance that keeps the public well and alive," he said in a 21-page opinion.

Health Net, based in suburban Los Angeles, responded by announcing substantial changes, including a pledge that it would not cancel policyholders "in the future without first seeking approval from a binding external third-party review process."

Bates, a mother who owns a hair salon, screamed with delight when she heard the news, said William Shernoff, the lawyer who represented her.

"The punitive damage award will do more than anything else to stop the shameful practice of canceling health insurance after people become seriously ill," Shernoff said.

[PlatyPius 5]

Good.

Insurance companies are chopf##ks.

[Alex+R 0]

Good.

Insurance companies are chopf##ks.

Yes they are. Take THAT, insurance companies!

I was on the phone with my insurance the other week, and the very rude lady was snapping at me about how they changed their minds about covering something, and I wanted to say to her, "do you ever go home at night and cry because it's your job to make everyday health care out of reach for people like me? Do you feel guilty when you tell someone they won't get a treatment paid for because of a technicality? Do you feel bad about yourself?"

I practiced restraint, however.

[one...two...tree 2,762]

Good.

Insurance companies are chopf##ks.

Yes they are. Take THAT, insurance companies!

I was on the phone with my insurance the other week, and the very rude lady was snapping at me about how they changed their minds about covering something, and I wanted to say to her, "do you ever go home at night and cry because it's your job to make everyday health care out of reach for people like me? Do you feel guilty when you tell someone they won't get a treatment paid for because of a technicality? Do you feel bad about yourself?"

I practiced restraint, however.

I just don't how the combination of profit motive and adequate care will ever be harmonious. Those two factors are diametrically opposed to one another.

[Kazan' Tiger 1]

Totally with you! Only happy when they are in taking mode. "Oh, our client actually needs the services they are paying for... Where's my cancelled stamp." JERKS!

Good.

Insurance companies are chopf##ks.

[Autumnchik 6]

Oh hell yeah, insurance companies SUCK. I have to deal with them quite often in my line of work ... it is so frustrating when they tell me a client is only allowed 12 sessions a calendar year for mental health, NO MATTER WHAT. 12 sessions isn't going to do a whole lot when someone has a horrendous trauma history and has had PTSD for years. ARGH! And the worst thing is, when I am talking to them to try to get more sessions, I am talking to a care manager who usually has been a clinician previously. How can you have been a clinician and understand about mental health issues, yet STILL try to limit the number of sessions???? Blows my mind!

Edited February 24, 2008 by autumnchik

[Amby 490]

asshats!

[cmartyn 0]

Ha Ha.. Luv It!

Too bad it has to come to this as all it will do now is raise rates for everyone through the roof. Well, throuh the tropphere cause its allready through the roof.

[Mr. Big Dog 10,747]

Ha Ha.. Luv It!

Too bad it has to come to this as all it will do now is raise rates for everyone through the roof. Well, throuh the tropphere cause its allready through the roof.

Well, this will only make the case for a single payer system stronger. Going that route, they'll price themselves right out of business.

Can't wait for the day to come.

[one...two...tree 2,762]

Ha Ha.. Luv It!

Too bad it has to come to this as all it will do now is raise rates for everyone through the roof. Well, throuh the tropphere cause its allready through the roof.

Well, this will only make the case for a single payer system stronger. Going that route, they'll price themselves right out of business.

Can't wait for the day to come.

Me too. And we don't necessarily have to have the government be the single insurer of healthcare. We just need to limit health insurance companies to not-for-profits. Taking the profit motive out of health insurance is the only way to stop things like this from happening.

[Kazan' Tiger 1]

I concur! There is no room for profit when it comes to human life.

Ha Ha.. Luv It!

Too bad it has to come to this as all it will do now is raise rates for everyone through the roof. Well, throuh the tropphere cause its allready through the roof.

Well, this will only make the case for a single payer system stronger. Going that route, they'll price themselves right out of business.

Can't wait for the day to come.

Me too. And we don't necessarily have to have the government be the single insurer of healthcare. We just need to limit health insurance companies to not-for-profits. Taking the profit motive out of health insurance is the only way to stop things like this from happening.