Another Insurance Company Sued Over Cancellations

Here we go again. This time, it's the HMO giant, Health Net, accused in a new lawsuit filed by the Los Angeles city attorney of enticing people into the plan, then turning around and canceling their coverage when they actually need it (LA Times, February 21, 2008, "L.A. sues insurer over cancellations").

"The company defrauded thousands of policyholders using 'a wide range of unlawful, unfair and fraudulent acts and practices' aimed at avoiding payment for expensive treatment by canceling the policies of those who needed it, 'rendering that coverage largely illusory,' the suit maintained."

Again, no big surprise there. Anyone who has spent more than a day or two in a hospital or nursing home under one of these so-called health plans knows how the insurance bean counters swoop down in hordes to try and find a way to get out of paying for the care you need and thought you were entitled to.