Health Net ordered to pay $9 million after canceling cancer patient's policy | Fri Feb-22-08 | Source: Los Angeles Times | http://www.latimes.com/business/la-fi-insure23feb23,1,5...
A breast cancer patient whose medical coverage was canceled by her insurer was awarded more than $9 million today in a case against Health Net Inc., one of the state'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. ...
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