Health Net’s problems seem to be traveling coast to coast. Not long after Health Net of California was fined $1 million by the Department of Managed Health Care (DMHC), Health Net of Connecticut has been accused of fraudulent activity by long time consumer advocate and Connecticut Attorney General, Richard Blumenthal.

Connecticut’s Allegations

According to the Hartford Courant, Health Net of Connecticut has been accused of:

…sending pharmacies fraudulent computer messages that deny some low-income children medication and for allegedly misleading a state inquiry into thinking it didn’t use the messages.

Basically, Health Net is being accused of telling pharmacies that certain medication is not covered when it really is. Blumenthal has called for sanctions against the company.

A turbulent week for Health Net

Connecticut’s allegations against Health Net come only a few days after California’s DMHC fined the company $1 million for lying to the state about whether they tied their employee bonus compensation program to policy rescissions.

According to a DMHC press release, the Department held on-site interviews with Health Net on two occasions, October 17th and November 6th 2007, and asked company officials whether they had a compensation program that provided bonuses to employees for rescinding insurance policies. Health Net denied having the programs in both instances.

Only two days after the November 6th interview, a judge ordered company to produce documents in an unrelated lawsuit against the company for rescinding an insurance policy. Much to the DMHC’s surprise, the documents showed that Health Net did have such a compensation program. Although Health Net officials attempted to keep those documents private, the judge refused and the DMHC fined the company for lying. Needless to say, it’s been a turbulent week for the insurer.

Has your insurer acted in bad faith?

Insurance companies have a duty to treat their policyholders in good faith and deal with them fairly. If your insurance company has not treated you fairly, contact an attorney whose practice focuses on bad faith insurance litigation. For a free consultation with an attorney, please click here.