Lawsuit claims Health Net gave bonuses for policy rescissions

Will be interesting to follow this one...pre-existing condition...heart condition...but yet she had breast cancer? Are will still being "cherry picked" for the overall condition of our bodies as far as being a risk? It has not been that many years that we have had records to reveal everything about our health as well...how do you control how and when you are diagnosed? Just a few questions that come to mind...isn't health insurance about getting our medical needs met or is it about who has the least flawed body in terms of medical care? Every company today has some type of goal structure in place if they are in business to make a profit, but how far does this go? BD

Health Net Inc., one of the state's largest health insurers, tied rewards and savings to its employees' ability to cancel policies based on misrepresentations in members' applications, according to documents in a lawsuit against the company.
The documents showed Health Net saved $35.5 million in "unnecessary" health care expenses for rescinding more than 1,000 policies between 2000 and 2006. At the same time, a Health Net analyst received about $21,000 in bonuses for her work, which included exceeding company goals for policy rescissions.
The information was revealed during an arbitration hearing this week in San Bernardino County in a lawsuit filed by Patsy Bates, a 51-year-old hairdresser from Gardena (Los Angeles County) who is suing Health Net for $6 million plus punitive damages for revoking her policy after her breast cancer was diagnosed.