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Saturday, Jan 28, 2023
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Health Net to Pay $1.95 million Settlement

Health Net of California agreed to pay about $1.95 million to settle claims relating to the rescission of patient’s insurance policies. The settlement was negotiated on behalf of the California Hospital Association, and involved about 200 hospitals. The class action lawsuit stems from Health Net’s decision to revoke patients’ coverage between February 2004 and October 2007. Under the settlement terms, Health Net, based in Woodland Hills, will reimburse hospitals for services they provided to rescinded members, since the patient’s policies were revoked after they had incurred medical bills. “Health Net is pleased to have resolved all existing litigation brought by former members and providers involving rescission practices,” the company said in a statement. In a separate agreement made last year with the California Department of Insurance, Health Net agreed to offer coverage to 926 former members whose policies were revoked after they incurred medical bills, and pay $25 million in fines. California hospitals reached a similar settlement involving patients with Blue Cross of California for $11.8 million last year. The settlement was negotiated by the law firm Hooper, Lundy & Bookman. “We are very pleased to have come to an agreement with Health Net that results in hospitals receiving substantial payments for the previously unreimbursed services that they provided to Health Net members who were rescinded,” said HLB partner and co-lead counsel, Glenn Solomon. “We believe that Health Net did the right thing here and appreciate its cooperation in reaching a mutually acceptable settlement.” Andrea Alegria

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