HMO Health Net gave its employees bonuses for canceling policies

Don't you just love HMOs?

Health Net, one of several plans available to New Jersey workers covered through state-approved plans, including Plainfield municipal employees and those of the Board of Ed, is one such. But with a distinction.

As reported in today's Los Angeles Times, Health Net, one of the largest HMOs in California, New Jersey and New York, had in place a policy of paying their employees bonuses for the number of policies canceled and the amount of money saved.

The bonus issue came to light in the case of a cancer patient whose policy was canceled by the HMO.

A state arbitrator awarded the patient, Patsy Bates, of Gardena, $9 million to settle a claim made by the breast cancer survivor, and lambasted the HMO for its 'despicable' practice.

Read the complete coverage here.

Health Net told the Times it is changing its rescission policy.

Wonder if that includes New Jersey...

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• LA Times: "Health Net ordered to pay $9M after canceling cancer patient's policy"
• Document: "Bates Arbitration Award" (PDF)
• State of New Jersey: "Plans: Health Net"
  

-- Dan Damon

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