State regulators have fined California-based Heath Net $1 million for failing to disclose a quota system used for the cancellation of individual insurance policies. Internal documents show Health Net paid a bonus to a senior analyst who exceeded termination goals. KPBS reporter Kenny Goldberg has the story.
The information about Health Net was revealed as part of a lawsuit against the company. A cancer patient whose coverage was terminated is suing the insurer for $6 million and punitive damages.
Cindy Ehnes directs the Department of Managed Health Care . She says regulators have been investigating Health Net's business practices. The $1 million fine is for failing to be truthful with investigators.
Ehnes : What is isn't, is the end of the story. Our survey team continues to be onsite at Health Net.
Ehnes says her department may issue more fines. Over the last six years, Health Net has cancelled about 1,600 policies. That allowed the company to avoid paying more than $35 million in medical claims.
Kenny Goldberg, KPBS News.
