Health Net fined for lack of candor
Daniel Costello
Los Angeles Times
The state Thursday slapped a $1-million fine on Health Net Inc., the Woodland Hills-based insurer that acknowledged last week that it set goals for cancellations and paid bonuses in part based on how many policyholders were dropped and how much money was saved.
State officials said they levied the fine after finding that the company misled investigators about such bonuses on two occasions during interviews at the company's headquarters this fall.
Thursday's fine was solely related to the company's candor. Health Net's cancellation practices remained under investigation by the state. If any violations of state regulations are found, the company could face additional fines.
In a consent agreement, Health Net agreed to pay the fine -- one of the largest in the history of the Department of Managed Health Care -- and to no longer engage in compensation practices linked to coverage cancellations.
November 16, 2007 at 12:00 AM | Permalink | Blog Reactions
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