(NaturalNews) A precedent-setting ruling was handed down recently in which a large California insurance company was ordered to pay more than $9 million to a breast cancer patient it dropped during chemotherapy treatment. California’s Health Net has since stopped its questionable practice of cancelling sick policy holders’ coverage.
The ruling was handed down by a private arbitration judge and serves as a powerful punitive measure against major insurers whose cancellation practices are currently under scrutiny by courts, state regulators, and politicians.
The judge ruled that state rules were violated and that the company acted in bad faith.
"Health Net was primarily concerned with and considered its own financial interests and gave little, if any, consideration and concern for the interests of the insured," stated the judge in the 21 page ruling.
Health Net’s Chief Executive Officer immediately halted all cancellations and released a statement saying that the company would be changing its coverage applications and retraining its sales staff. CEO Jay Gellert also promised to move quickly to "give people the confidence that they can count on their policy."
The judge’s strong condemnation of Health Net’s cancellation practices and the large sum of money awarded was a clear message to insurance regulators and patient advocates. The California State Insurance Commissioner praised the judge’s ruling.
Before this ruling, insurance companies had staunchly defended such cancellations, explaining that they were necessary to keep costs down. Their reasoning behind the cancellations was that they were weeding out people who had failed to disclose pre-existing conditions on their insurance applications. They also stated that such cancellations occurred infrequently.
Health Net initially defended its actions, saying it would never have insured the patient in question if she had disclosed her accurate weight and a pre-existing heart condition. The patient stated that she was distracted at the time a broker filled the application out on her behalf and that she had answered to the best of her ability.
It was determined during the hearing that Health Net awarded paid bonuses to paid employees who met a cancellation quota and for the amount saved. The judge specifically addressed this practice, saying, "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."
Health Net’s lawyers argued that the patient’s suffering due to the cancellation was “minimal” and this argument was said to have infuriated the judge. Most of the award was in the form of punitive damages. This kind of award is unusual in private arbitration. This case was heard by a private judge because Health Net required the patient to agree to binding arbitration.
Health Net’s legal problems are expected to continue. There are three other cancellation lawsuits pending, one of which is a class action suit seeking damages on behalf of 1600 people who have lost coverage through these cancellations over the last four years.
About the authorJo Hartley
Wife, Mother of 8, and Grandmother of 2
Jo is a 40 year old home educator who has always gravitated toward a natural approach to life. She enjoys learning as much as possible about just about anything!
http://www.loftymatters.com
###
Related Articles
• The inside scoop: Natural Health Products Expo West industry event
• NaturalNews emerges as top truly independent natural health news site
• NaturalNews readers making waves across the natural health, natural living markets (opinion)
• Preview of seven amazing new natural health products to be featured on NaturalNews
• Kevin Trudeau's Natural Cures book review
 |
Additional Resources:
natural health
technology
renewable energy
|
Take Action: Support NaturalNews.com
 Email this article to a friend
 Share this article on: NewsVine | digg | del.icio.us
Permalink to this article: http://www.NaturalNews.com/022834.html
Reprinting this article: Non-commercial OK, cite NaturalNews.com with clickable link.
|
 |
 |
Receive our Natural Health Newsletter for FREE
 Subscribe now (it's free!) to win. We randomly choose a subscriber each month to send $100 in eco-home products or a RealGoods.com gift certificate (our choice). Plus, you'll receive FREE news, articles and action alerts from NaturalNews.com editors and join over 800,000 monthly readers who report extraordinary health improvements after becoming a subscriber!
- Receive breaking news alerts on natural health solutions, renewable energy, the environment, global warming and more.
- Receive a free instant download of our $29 Secret Sources guide that reveals top sources for little-known health and diet solutions.
|
|
 |
 |
Recommended Special Report:
 Seven Words that can Change the World
by Joseph R. Simonetta
Read this special report now...
"Seven Words That Can Change the World reveals the astonishing, simple truths that have the power to forever transform our world for the better while freeing our minds from the enslavement of limiting beliefs. This is not a text for the simple-minded; it is a guiding philosophy for the mindful, intelligent few who are wise enough to seek out -- and recognize -- the higher simplicities of truly purposeful living." - Mike Adams, the Health Ranger, editor of NaturalNews.com
|
More on NaturalNews.com:
• Streaming Health Ranger Videos
• CounterThink Cartoons
• FREE Special Reports
• Podcasts
|
 |
|
 |
 |
NEW 6-CD audio set reveals amazing new protocol for reversing cancer, diabetes, obesity, heart disease and more. Click to learn more. |
 |
Own the first 8 Health Ranger Report audio programs on 6 CDs. Covers weight loss, ADHD, vaccinations, processed meats, bone health and more. Click to learn more. |
Featured Videos
Short clip on Aspartame
A short clip on aspartame from the documentary All Jacked Up.
Click here to view now...
Exclusive video on Aspartame
The dangers of aspartame! Exclusive interview footage from Cori Brackett of Sweet Remedy.
Click here to view now...
Exclusive Footage from All Jacked Up!
See interview footage featuring the Health Ranger in the upcoming junk food film, All Jacked Up.
Click here to view now...
Drug Ad Parody
See the Health Ranger's satire parody of Merck's cholesterol drug ad.
Click here to view now... |
The Empire of Modern Medicine
Attack on Health Freedom
Medical Quackery
|
|
Read recommendations on supplement companies, health food manufacturers and personal care product makers that you can trust. Our 100% independent review list tells you who to trust and who to avoid in the natural health industry. Click to read. |
|
Printable Version
