Health Insurer Tied Bonuses To Dropping Sick Policyholders

So you’re in the middle of chemotherapy and your insurer says …”Nope… No more for you.” And they give you some chintzy excuse… Some technicality… And then you find out that it was all tied to your adjuster getting a year end bonus!

I’m sure your mom’s real proud of you, Ms Adjuster! She helped sell out 1600 people for a total $20,000 bonus over 6 years… But guess how much the company made?… Try $35.5 Million.


patsy bates

DROPPED: Patsy Bates, 51, a Gardena hairdresser, is seeking $6 million plus damages in a suit against Health Net after her coverage was rescinded while she was in the middle of chemotherapy treatments.

One of California’s largest health insurers set goals and paid bonuses based in part on how many individual policyholders were dropped and how much money was saved.

Woodland Hills-based Health Net Inc. avoided paying $35.5 million in medical expenses by rescinding about 1,600 policies between 2000 and 2006. During that period, it paid its senior analyst in charge of cancellations more than $20,000 in bonuses based in part on her meeting or exceeding annual targets for revoking policies, documents disclosed Thursday showed. (READ MORE)

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