On April 13, 2004, the New York State Insurance Department and Health Net reached an agreement that stated that Health Net would “refund policyholders $4.99 million for claims and interest for medical services. Also, Health Net will create an appeals process for claims that had been partially or fully denied and will offer new appeals on certain emergency room claims that had been denied. The Department’s recent Report on Examination revealed that Health Net utilized an outdated schedule to determine certain reimbursements for out-of-network physicians and other medical providers between July 1999 and December 2002.” Along with the $4.99 million refund, Health Net paid a $500,000 fine.