Insurer forced to pay for cancelling helath policy

REWahoo · 04-14-2008, 03:44 PM

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

**Martha** · 04-14-2008, 05:57 PM

Sounds like the insurance broker is in BIG trouble.

ladelfina · 04-15-2008, 05:24 AM

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.

04-14-2008, 03:44 PM	#1
REWahoo Moderator Emeritus Join Date: Jun 2002 Location: Texas Hill Country Posts: 11,518	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 __________________ [MODERATOR EDIT]

04-14-2008, 05:57 PM	#2
Martha Moderator Join Date: Feb 2004 Location: minnesota Posts: 9,796	Sounds like the insurance broker is in BIG trouble. __________________ . Do not rely on the information provided--my posts are not to be taken as legal advice. Needless to say you must consult with your legal representative. I am not responsible for errors. If I offended you with cya I apologize. If I did not, I tried.

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04-15-2008, 05:24 AM	#3
ladelfina Thinks s/he gets paid by the post Join Date: Oct 2005 Posts: 2,648	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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