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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.

Illegally Collecting Money from Enrollees’ Personal Injury Awards

Date: 10/19/2005 (Date of Settlement Announcement)

Misconduct Type: Consumer Affairs

Enforcement Agency: State/Local

Contracting Party: None

Court Type: Civil

Amount: $166,671

Disposition: Settlement

Synopsis: On October 19, 2005, the Connecticut Attorney General announced a settlement with Health Net resolving charges that the company "illegally collected money from its enrollees' personal injury awards." The charges were brought because, "under state law, insurance companies that cover the cost of medical care in personal injury cases are prohibited from later recovering those costs from enrollees who receive money through personal injury settlements or judgments." The company agreed to pay 98 of its members a total of $166,671.