Being dropped by your insurance carrier

Posted Wednesday, November 14, 2007 by Ed Harper

Recent article in LA Times. Health Net, a California based insurance company, bonuses a high-level analyst based on her meeting or exceeding annual targets for revoking policies.

Practices leave policyholders without health insurance coverage when they need it most – when they face dire medical consequences and/or medical emergency. Health Net disclosures provided an inside look at an insurer’s practice of providing monetary compensation for employees who were able to cancel policies when major medical claims were looming on behalf of one of their insured.

Former LA Superior Court Judge Sam Cianchetti provided the La Times with ability for records to be made public. Barbara Fowler, Health Net Senior Analyst in charge of rescission review, had a monthly average in 2002 of 23 policies cancelled. In 2005, her employee compensation was based on 301 policies cancelled.

California state law forbids insurance companies from tying any compensation for claims reviewers to their claims decisions. R-67 in Washington State will provide legal authority to monitor 1st party insurance company practices in automobile claims.

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