California health plan Health Net, along with two of its subsidiaries, has settled a lawsuit brought by the Los Angeles city attorney over charges that it improperly canceled members' policies.
Under the settlement, Health Net will pay a $2 million fine and will also make $500,000 in charitable contributions. Also, more than 800 ex-policyholders will get $6.3 million in payments, or about $7,800 each. They also will be able to request reimbursement for out-of-pocket medical expenses incurred during the period in which they had no coverage.
This on the heels of a similar settlement with Anthem Blue Cross, which agreed this week to pay a $1 million fine [1] to the California Department of Insurance and offer new coverage to 2,330 people it dropped when they began incurring high-cost medical expenses.
To learn more about Health Net's legal problem:
- read this Modern Healthcare article [2] (reg. req.)
Related Articles:
Health Net set goals, bonuses based on policy cancellations [3]
Anthem Blue Cross agrees to $1 million fine [1]
Los Angeles sues Anthem for individual policy cancellations [4]
Blue Cross of CA settles plan-cancellation suits [5]
Links:
[1] http://www.fiercehealthcare.com/story/anthem-blue-cross-agrees-1m-fine/2009-02-11
[2] http://www.modernhealthcare.com/apps/pbcs.dll/article?AID=/20090212/REG/302129973
[3] http://www.fiercehealthcare.com/story/healthnet-set-goals-bonuses-based-policy-cancellations/2007-11-09
[4] http://www.fiercehealthcare.com/story/los-angeles-sues-anthem-for-individual-policy-cancellations/2008-04-17
[5] http://www.fiercehealthcare.com/story/blue-cross-of-ca-settles-plan-cancellation-suits/2006-10-18