Arbitrator Amputates $9M from Healthcare Insurer
February 22, 2008
LOS ANGELES -- Arbitrator Sam Cianchetti found that Health Net Inc., a major California health insurance group, should pay more than $9 million to a client for canceling her insurance policy after she was diagnosed with breast cancer. The arbitrator's award went so far as to criticize Health Net for rewarding its employees for saving insurance funds and canceling insurance claims like the one in question.
The insurance company quickly announced it would start using a third-party review process before canceling policyholders in the future, and would implement other changes to avoid potential problems in the future.