California fines plan for failing to reveal policy cancellation incentive

  1. California fines plan for failing to reveal policy cancellation incentive

    California regulators are investigating other insurers and tightening regulations to limit individual insurance rescission.

    Meanwhile, a new law gives doctors protection.
    By Emily Berry, AMNews staff. Dec. 10, 2007.

    Health Net has agreed to pay the state of California $1 million for failing to tell the whole truth to regulators about how it rewarded its employees who cancelled individuals' health insurance.
    The company -- and others -- could face more fines in the future as the California Dept. of Managed Health Care continues to investigate insurance rescission practices...
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  3. by   Weeping Willow
    This is a complete outrage. First, this amount of money is nothing to an insurance company, which is raking in billions and billions. It's a little puff of air. Secondly, if this doesn't tell you that we need another revolution in this country to get rid of all the crooked business people and their cronies in the government, i don't know what will.

    Yes, there were fraud and selfishness on the part of some doctors when they were in charge of our health care, too, but having insurance companies in charge is no better - and is really much worse, as they are guided purely, it seems, by a profit motive and by no regard whatsoever for the lives and well-being of their patients.

    I hope every state in the Union initiates investigation of insurers and levies REAL fines on them. Reminds me of the book by John Grisham about the young man dying of cancer because the insurer wouldn't pay for help for him much earlier on, when he could have been helped.