DROPPED: Patsy Bates, 51, a Gardena hairdresser, is seeking $6 million plus damages in a suit against Health Net after her coverage was rescinded while she was in the middle of chemotherapy. Photo: Ken Hively / Los Angeles TimesLOS ANGELES (Los Angeles Times), November 9, 2007:
One of the state's largest health insurers set goals and paid bonuses based in part on how many individual policyholders were dropped and how much money was saved.
Woodland Hills-based Health Net Inc. avoided paying $35.5 million in medical expenses by rescinding about 1,600 policies between 2000 and 2006. During that period, it paid its senior analyst in charge of cancellations more than $20,000 in bonuses based in part on her meeting or exceeding annual targets for revoking policies, documents disclosed Thursday showed.
The revelation that the health plan had cancellation goals and bonuses comes amid a storm of controversy over the industry-wide but long-hidden practice of rescinding coverage after expensive medical treatments have been authorized.
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By Lisa Girion
Los Angeles Times Staff Writer
Copyright 2007 Los Angeles Times
