Health Net also waived their right to a hearing, interesting. The checks are in the mail to over 50,000 current or former consumers. It took a few years though to resolve and a 13 million dollar fine on top, but for the insurers who have "reserves" stockpiled to handle such incidents, this could represent a small drop in the bucket as lawsuits filed can easily go over the 13 million paid for just this one fine. BD
The health maintenance organization Health Net has paid $41 million in claims and fines for short-changing 88,000 customers in New Jersey, under an agreement announced today by Banking and Insurance Commissioner Steven Goldman.
The payments include a record $13 million fine, stemming from a state investigation into Health Net and its predecessors, First Option Health Plan of New Jersey and Physicians Health Services of New Jersey.