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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.
McCoy/Wachtel/Scharfman ERISA Lawsuits
Date: 11/01/2007 (Date of Settlement Announcement)
Misconduct Type: Health
Enforcement Agency: Non-Governmental
Contracting Party: None
Court Type: Civil
Synopsis: Three separate lawsuits were filed in New Jersey federal court by beneficiaries in POS plans administered by Health Net. The lawsuits claimed Health Net violated the Employee Retirement Income Security Act (“ERISA”) by systematically under-reimbursing out-of-network service providers, requiring beneficiaries to pay unreasonably high out-of-pocket costs. In November 2007, it was reported that Health Net settled the three lawsuits. In July 2008, the court gave final approval to the settlement. Under the agreement, Health Net did not admit liability and will pay $215 million and make $40 million worth of improvements in its business practices.