Health Net of California has agreed to pay a $1 million fine to the
California Department of Managed Health Care for twice failing to disclose information to state investigators about bonus programs for Health Net workers who met or beat targets for canceling insurance policies.
The state has been investigating health plans since 2005 amid questions about whether they illegally rescinded health policies without proving that those covered willfully misrepresented themselves on their applications. The questions have been highlighted by a lawsuit filed by a California breast cancer patient whose coverage was canceled by Health Net during her treatment.
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