Federal Contractor Misconduct Database (FCMD)

The federal government routinely awards contracts to companies with histories of misconduct, including contract fraud and other violations. POGO believes that providing this website will help to improve contracting decisions and increase public knowledge of how the government spends billions of taxpayer dollars each year. Read more…

Bates v. Health Net (Policy Rescission)

Patsy Bates, who sued Health Net after the company cancelled her coverage while she was undergoing chemotherapy for breast cancer, was awarded over $9.3 million by a California arbitrator. Arbitration judge Sam Cianchetti found Health Net had failed to satisfy the obligation of good faith and fair dealing it owed to Patsy Bates and ordered Health Net to pay Bates’ unpaid medical bills, plus damages and interest. During the hearing, it was revealed that Health Net established goals and paid bonuses based in part on how many individual policies were cancelled and how much money was saved. After the decision, Health Net announced a freeze on policy cancellations “without a binding external, third-party review process” and promised a review of its broker training policies. See related Health Net, Inc. instances, “Policy Rescission Program Investigation” and “Policy Rescission (L.A. City Attorney Lawsuit).”

Misconduct Type
Enforcement Agency
Contracting Party
Court Type
Judgment Against Defendant
Date of Arbitration Decision
Contractors Involved Penalty
Health Net, Inc. $9,368,117
Further Information Released
Health Net Press Release 4/19/2008
Interim Arbitration Award 4/19/2008

See also:

Federal Contractor Misconduct Database