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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 (L.A. City Attorney Lawsuit)

Los Angeles City Attorney Rocky Delgadillo sued Health Net Inc. for allegedly engaging in unlawful and deceptive business practices by improperly rescinding coverage after patients make medical claims. In February 2009, Health Net and the City Attorney’s Office settled the lawsuit. Under the terms of the settlement, more than 800 rescission victims will receive $6.3 million in automatic payments. Health Net also agreed to pay $2 million in civil penalties, as well as to make $500,000 in charitable contributions to Padres Contra El Cancer (Parents Against Cancer) and the Children’s Health Fund. In addition, Health Net agreed to adopt a new corporate compliance program and abolish any rescission-related bonus programs. See related Health Net, Inc. instances, “Policy Rescission Program Investigation” and “Bates v. Health Net (Policy Rescission).”

Misconduct Type
Consumer Affairs
Enforcement Agency
State/Local
Contracting Party
None
Court Type
Civil
Disposition
Settlement
Date of Filing
2/20/2008
Contractors Involved Penalty
Total
Health Net, Inc. $8,800,000
Further Information Released
L.A. City Attorney Press Release 4/7/2009
Complaint 4/29/2008

See also:

Federal Contractor Misconduct Database