California Hospital Association v Health Net of California
California Hospital Association File Suit Against Health Net of California
On behalf of the California Hospital Association and all California hospitals, Hooper, Lundy and Bookman, Inc. (HLB) has negotiated a class action settlement with Health Net of California and Health Net Life Insurance Company, relating to rescission of patients policies. Under the settlement, Health Net has agreed to pay at least $1.95 million to settle claims with hospitals that did not receive payments following rescissions.
The settlement is the result of extensive negotiations that have been ongoing between HLB and Health Net since July 2008, and covers rescissions by Health Net that occurred between February 2004 and October 2007. (Case No. BC414389).
Under terms of the Settlement Agreement that was preliminarily approved by the court today, Health Net will establish a Facility Compensation Fund and mechanisms to reimburse hospitals for the services they provided to rescinded members. In addition, Health Net will provide each affected hospital with a list of the patients whose policies were rescinded so that the hospitals and the patients can receive closure regarding the rescissions.
For copies of the original complaint and the settlement agreement go to www.health-law.com.
For more information contact:
Hooper, Lundy & Bookman, Inc.
Glenn Solomon, Principal, 310-551-8179
Cell: 310-503-2553
Daron Tooch, Principal, 310-551-8192
Cell: 310-702-8192
