Insurer Gave Bonuses For Dropped Policies?

(CBS)  Hairdresser Patsy Bates is working through the pain -- the pain of living with breast cancer.

"I'm trying to live here, you know, I don't want to die," said Bates.

The pain of having almost $200,000 in medical bills because her insurance company, Health Net, pulled the plug on her policy right in the middle of her cancer treatment, reports CBS News correspondent Bill Whitaker.

"I had cancer, my life was on the line, and these guys did not care, did not care at all," she said.

In fact, she was in the hospital getting prepped for surgery when she first learned Health Net was dropping her.

Bates is now suing the giant insurer for $6 million, causing the company pain.

Documents Health Net was forced to hand over reveal senior analyst, Barbara Fowler, single-handedly dropped hundreds of policy holders like Bates from the rolls every year.

The shocker: the company awarded her bonuses based on how many policy holders she dropped.

The company called 2003 -- the year she dropped Patsy Bates -- "a banner year" for Fowler, for saving the company $6 million in what they call "unnecessary health care expenses."

"It has never affected how I performed my job duties," said Fowler.

Bates' attorney calls that outrageous and illegal.

Health Net fought to keep the documents secret and refused to speak to CBS News.

But in a statement released Friday Health Net called the allegations inaccurate and misleading and said that any decision to rescind a health insurance policy is based on factual information.

That is for the judge to decide.

"If they did this to me today, who are they going to do this (to) tomorrow?"

Patsy Bates says she is not giving up without a fight.

[kmccliment]

There''''s another story about this on CBSNews that says she lied about her health condition and weight on her app. The company has every right to cancel her policy if she lies on the application.


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Posted by hawksprings at 07:31 PM : Nov 11, 2007


Can you post the link please. Thank you

[kmccliment]

That is absolutely correct If any insurance company: auto life or health can prove you willfully lied on your application. They will drop you like its hot! If this is the case here then she has gone to the media to beat the company up in the public eye, hoping they would offer a settlement. She really wouldnt want this to go to trial. That is if she has in fact lied.

[jlwesley]

What we need is an overhaul of the Medical Insurance and Court system in this country, get the cost of health care back where it belongs.

If you happen to be one of the Pollyanas that believe national health care is the answer, ask the guy from Canada that needed Quad Bypass and was put on a 13 month waiting list what he thinks of it, also ask him what he thinks about the increase in his tax rate to support it.

National health care is not the answer. Reining in and controlling out own system is.

[hawksprings]

There''s another story about this on CBSNews that says she lied about her health condition and weight on her app. The company has every right to cancel her policy if she lies on the application.

[erichsh]

whatithink - what does Christianity have to do with health insurance? Whatever the perceived connection, why do you single out one religion? Why not not tie it to Judaism - or Islam, etc., while you''re at it?

[whatithink-2009]

oldpilot954,

Why are people like you such EXTREMISTS? You think the only colors in the coloring box are black and white. What sad and boring pictures you create! There are ways to fix the system without going to the EXTREME that you mention.

[whatithink-2009]

trimat02,

You call your questions hard. I call your questions stupid. WHY would you assume that she wasn''t current on her health insurance premiums? Your second question asks how far behind, like you assume that answer already would be no!

One day maybe somebody you love will have breast cancer and have the insurance pulled from under them while they are in the middle of treatment for now reason!

Yes, this is our Christian America.

[oldpilot954]

Socialist healthcare just lowers the standards for everyone. Why develop new drugs? The government is going to pay you the same anyway. Why be a good doctor when you get paid the same as a bad doctor? Besides, if we can''t afford Social Security, we sure can''t afford medical coverage for every man, woman, and child (including illegal aliens)in the nation. Therefore, we will do like some countries with socialist medicine -- after you are retired and in your 70s we will just quit treating you if it requires more treatment than a round of antibiotics. So now we will get cheated out of our retirement benefits and our medical coverage. Great plan!!

[gmond]

This isn''t news, it''s just SOP in the insurance business.

[zootallures2]

This is why America needs universal healthcare? Nope. America needs to arrest those who break their oath of the pledge of allegence and deport those who refuse to recite it.