DO INSURANCE COMPANIES ENGAGE IN FRAUD?
Insurance companies have a duty to handle their policyholders claims in good faith. They are required by law to deal fairly and reasonably with their insured, especially in the manner they evaluate claims for payment. Some companies, however, disregard these legal obligations in order to minimize costs and increase their bottom line. We heard the story of Patsy Bates, a breast cancer patient, who was insured with Health Net. In the middle of chemotherapy, the insurance company dropped her health insurance coverage. As a result, Ms. Bates was left to pay for these expensive medical treatments. Ms. Bates fought back and sued Health Net. In an arbitration that was held, the judge who presided the arbitration ordered Health Net to pay more than $9 Million to her. The judge ruled that Health Net acted in bad faith and described its conduct as egregious, thus, warranting the imposition of punitive damages against the company. Last week, the LA City Attorneys Office filed a lawsuit against An
