Request Legal Help Now - Free


Canceled Insurance

Los Angeles, CA: (Feb-25-08) Patsy Bates, a 52-year-old hairdresser, found out she had breast cancer in 2004. She thought she had reliable health care coverage with Health Net, but it dropped her coverage while she was in the middle of chemotherapy. Bates was left with $129,000 in unpaid medical bills after Health Net retroactively canceled her insurance policy.

Bates sued the for profit insurer and was awarded $9 million in punitive damages. Health Net also announced it has stopped the controversial practice of canceling sick policyholders' policies. During arbitration, internal company documents showed that Health Net was rewarding employees with bonuses based on the number of cancellations they got. Health Net made more than $2 billion in gross profit in 2007. Employees were asked to meet cancellation quotas and were also rewarded based on the amount of money they saved the company. Health Net saved more than $35 million by rescinding policyholders between 2002 and 2006. [ABC NEWS: CANCELED INSURANCE]

Legal Help

If you have a similar problem and would like to be contacted by a lawyer at no cost or obligation, please click the link below.
Published on Feb-25-08


Fields marked * are mandatory. Please read our comment guidelines before posting.


Note: Your name will be published with your comment.

*Email Address:

Your email will only be used if a response is needed.
*Your Comment:

Are you the defendant or a subject matter expert on this topic with an opposing viewpoint? We'd love to hear your comments here as well, or if you'd like to contact us for an interview please submit your details here.

Request Legal Help Now! - Free