November 13th, 2007

red panda eating bamboo

HealthNet insurer ties employee bonuses to dropping sick patients

http://www.latimes.com/business/la-fi-insure9nov09,0,755599,print.story
One of the state's largest health insurers set goals and paid bonuses based in part on how many individual policyholders were dropped and how much money was saved.

Woodland Hills-based Health Net Inc. avoided paying $35.5 million in medical expenses by rescinding about 1,600 policies between 2000 and 2006. During that period, it paid its senior analyst in charge of cancellations more than $20,000 in bonuses based in part on her meeting or exceeding annual targets for revoking policies, documents disclosed Thursday showed.