Health Net agrees with Calif. regulators to pay fine.
This post comes from Reuters News.
“Health Net Inc (HNT.N: Quote, Profile, Research, Stock Buzz) has agreed with the California Department of Insurance to pay $3.6 million in penalties and about $14 million in reimbursements for medical charges.
The company has also agreed to reinstate the healthcare coverage of 926 people whose policies it canceled after they got sick and halt improper cancelations in the future, California Department of Insurance said in a news release.
The Woodland Hills, California-based company, however, did not admit to any wrongdoing.
“While we do not necessarily agree with the California Department of Insurance’s allegations, we do believe it is time to move forward and make sure these affected individuals can obtain coverage,” Health Net Chief Executive Jay Gellert said in a statement.
The agreement allows Health Net to avoid being targeted for more enforcement action relating to potential legal violations uncovered by auditors.
Health Net may also be required to pay an additional penalty of as much as $3.6 million if a follow-up examination finds that it did not correct all deficiencies.” Click here to read the rest of this article.
