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Legal News

: It's (Barely) Legal

Insurer dumps patients in mid-treatment

By Glen Ashman

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One of the worst health insurance companies in the business gets its rear (deservedly) whipped in court:

Cut-off cancer patient to get $9M

AP - Sat Feb 23, 2:30 PM ET

LOS ANGELES - A woman who had her medical coverage canceled as she was undergoing treatment for breast cancer has been awarded more than $9 million in a case against one of California's largest health insurers. Patsy Bates, 52, a hairdresser from Lakewood, had been left with more than $129,000 in unpaid medical bills when Health Net Inc. canceled her policy in 2004. On Friday, arbitration judge Sam Cianchetti ordered Health Net to repay that amount while providing $8.4 million in punitive damages and $750,000 for emotional distress... The award came a day after the Los Angeles city attorney sued Health Net, claiming it illegally canceled the coverage of about 1,600 patients. City Attorney Rocky Delgadillo also said the company illegally ran an incentive program in which it paid bonuses to an administrator for meeting targets of policy cancelations.  Health Net acknowledged that such a program existed...

Full post as published by It's (Barely) Legal on February 24, 2008 (boomark / email).

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