Health Net Inc. was ordered to pay more than $9 million for canceling coverage for breast cancer patient Pasty Bates, the Los Angeles Times reported. Arbitrator Judge Sam Cianchetti found that Health Net broke several state laws when it canceled Bates’ policy, according to the Los Angeles Times. This is the first time an arbitration judge has ordered such an award to be paid, the paper stated. Cianchetti also criticized the company for giving employees bonuses based on the number of policies they canceled and, thus, saving money. In light of Cianchetti’s findings, Woodland Hills-based Health Net has pledged not to cancel future policies “without first seeking approval from a binding external third-party review process,” the Los Angeles Times reported.
