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Insurer forced to pay for cancelling helath policy
Old 04-14-2008, 02:44 PM   #1
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Insurer forced to pay for cancelling helath policy

For those of us buying our own individual health policies, a big concern is "If I become seriously ill, will the insurer look for a way to cancel my policy?". Here is an example of an insurance company doing just that, but ending up having to pay $9.3 million in restitution.

[Patsy Bates] was undergoing chemotherapy treatments for breast cancer in late 2003 when Health Net began to question the validity of her policy. Claiming that Bates had failed to disclose a heart condition and had listed the wrong weight on her application, the company canceled her policy."

Cancer Patient Awarded Millions

Numbers is hard.

Retired in 2005 at age 58, no pension

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Old 04-14-2008, 04:57 PM   #2
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Sounds like the insurance broker is in BIG trouble.


No more lawyer stuff, no more political stuff, so no more CYA

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Old 04-15-2008, 04:24 AM   #3
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For every one of these cases, I worry about the thousands of other people who just give up, crawl away, and die. Or maybe they try to fight it but don't even live to see their day in court. I also wonder to what extent these judgments are the equivalent to Fed-Ex parking tickets.. just part of the cost of doing business. Deny a few hundred or a few thousand claims a week and maybe one will squawk.
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