Health Insurance – buyer beware!

Health Insurance – buyer beware!

I have a quick follow up to yesterday’s e-Alert “Sweet Comeuppance” (3/11/08), in which I took unapologetic pleasure in seeing a large health insurance company exposed and punished for its unethical policies.

For those of you who might have wondered (as I did) if the $9 million awarded to former Health Net customer Patsy Bates might be reduced on appeal, rest assured – that’s not going to happen. When a jury grants a very large reward, it’s often reduced in an appellate court. But when an arbitration judge grants an award, it’s binding – signed, sealed, delivered.

A representative for Health Net told the LA Times that executives for the company are still assessing their options. They say they might have some disagreements on the way the law was interpreted by the judge. In other words, they’ve got a team of lawyers looking high and low for some wiggle room, hoping to shave a few million off the award.

I’ll let you know how that turns out.

Meanwhile, I came across another insurance-related item I wanted to share – this one a warning for pet owners. The following quote comes from Bruce Watson who blogs on a web site called WalletPop.

“After reading through readers’ comments on my blog, I searched the internet and was blown away by the outpouring of anger over dishonest pet insurance companies. According to many writers, some insurance companiesregularly cite pre-existing conditions and hereditary health problems as excuses for refusing payment. The basic complaint is that insurance companies manipulate sentimental pet owners then unceremoniously dump them when they actually need help.”

I once read that the most lucrative business in the U.S. isn’t oil, isn’t pharmaceuticals, and isn’t computer products – it’s insurance. Apparently you can make a boatload of profits by taking piles of money from EVERYONE and giving back precious little.

Source:
“From Pets to Beauticians to You: Health Insurance Doesn’t Discriminate on Who it Cheats” Bruce Watson, WalletPop, 2/26/08, walletpop.com