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The government awards contracts to companies with histories of misconduct such as contract fraud and environmental, ethics, and labor violations. In the absence of a centralized federal database listing instances of misconduct, the Project On Government Oversight (POGO) is providing such data. We believe that it will lead to improved contracting decisions and public access to information about how the government spends hundreds of billions of taxpayer money each year on goods and services. Report an instance of misconduct »

Health Net, Inc.

Claims Handling and Rescission Practices

Date: 09/12/2008 (Date of Announcement)

Misconduct Type: Health

Enforcement Agency: State/Local

Contracting Party: None

Court Type: Administrative

Amount: $25,000,000

Disposition: Settlement

Synopsis: Health Net agreed to pay the California Department of Insurance $3.6 million in penalties, $14.2 million in reimbursement and $7.2 million in waived insurance premiums and agreed to reinstate healthcare coverage of 926 people, whose individual and family policies were rescinded during the past four years. Health Net also agreed to establish an independent, third-party review process for future rescission decisions and make significant changes to its application form, underwriting process, agent training, and notification of consumers under investigation for information on their applications.