Health Net Forced To Refund $5M: Case Underscores Insurer’s ‘Bad Faith’ Business

Centene Corp.-owned Health Net has been dealt a blow by the New York’s Department of Financial Services recently. It appears that the sins of the past are fast catching up on the insurance company as the government regulator ordered Health Net to pay claims that were previously denied, and without just cause. The refund covers policy claims from July 1999 to December 2002.

The development serves as a breath of fresh for thousands of more policyholders victimized by Health Net’s dubious business practice. That Health Net walked back from its hardcore stance of paying due is an encouraging indicator – that the wheel of justice is moving just fine, albeit rather slow. But with persistence, a case could be won and because the truth is on the side of the oppressed.

Health Net Made To Face The Music

The refund directive saw Health Net making amends on policyholders who were denied the benefits of their health plans for years. The total damages amounted to $4.99 million, significant enough to signify how the insurer was carrying out a policy of avoiding its obligations whenever possible.

The case brought to light the wrongdoings that Health Net had committed. Media reports have highlighted that the California company threatened the operations of more than 100 treatment centers in the state by rejecting their payment claims. Making life difficult for these care providers seemed to be the norm for Health Net as the company was fully aware that treatment centers typically take in insured patients.

If these facilities were cut off from their lifeline or payment from insurance providers, then the danger is real that they could be shuttered in no time. For Health Net, this has been the ploy in the past, and it continued even after the 2016 merger with Centene. It was a case of old habits die hard, and it looked like that despite the reprimand from the government, Centene and Health Net do not intend to change their ways.

The Fight Must Go On

It’s only proper then that there should be no let-up in the fight to bring these erring companies to justice. Centene and Health Net’s business practices have one purpose only – to make money at all costs. There is no humanity in what they do, so customers hurt by their ways would do well to band together.

A unified effort against Centene and Health Net will make for a stronger case to defeat these companies, and use the long arm of the law to make them do the right thing. They should be reminded they are in the business of covering for people with medical needs. That means the priority is saving lives and not stock-piling dollars.

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