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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…
Policy Rescission Program Investigation
The California Department of Managed Health Care (DMHC) fined Health Net, Inc. $1 million for failing to disclose an employee bonus program based in part on the cancellation of individual insurance policies. According to the DMHC, on two separate occasions in October and November 2007, Health Net failed to disclose to investigators the existence of the bonus program, which awarded bonuses to employees who met or exceeded goals for health insurance policies that were rescinded after large medical claims were paid. The program was discovered in the course of a lawsuit filed by Patsy Bates, a Health Net policy holder whose coverage was dropped while she was undergoing treatment for breast cancer. The DMHC continues to investigate the policy rescission practices of Health Net and other managed-care companies in the state. The probe of Health Net, scheduled to conclude sometime in early 2008, could result in more fines. See related Health Net, Inc. instance “Bates v. Health Net (Policy Rescission).”
- Misconduct Type
- Health
- Enforcement Agency
- State/Local
- Contracting Party
- None
- Court Type
- Administrative
- Disposition
- Fine
- Date of Consent Agreement
- 11/16/2007