A previous post in this space addressed an
Arbitration Award in a California Arbitration. The Arbitration of the
Insurance issues apparently including Good Faith and Fair Dealing or
not, was demanded by the Health Insurance Company, Health Net Inc. The
agreed Arbitrator is a retired California Judge. The California
Arbitration resulted in an Award of over $9.4 Million, $8.4 Million of
which was a Punitive Damages assessment against Health Net. See the
post here, on February 23, 2008.
On February 28, 2008, a follow up newspaper
report published in the Los Angeles Times Online seems to call into
question what remedies or options, if any, Health Net and its Attorneys
may have to appeal or even question the Arbitration Award: Lisa
Girion, "Penalty Cuts Insurer Profit/Health Net Lowers Its Earnings
After a Judge Awards $9.4 Million to a Cancer Patient Whose Policy Was
Canceled" (Los Angeles Times Online, Thursday, Feb. 28, 2008).
As the linked newspaper report's headline
reflects, Health Net is filing documents with the Securities and
Exchange Commission reflecting that the Arbitration Award has lowered
its reportable net income for 4Q 2007, from $123.4 Million to $116.9
Million.
The newspaper also reports that the California
Arbitrator has awarded the Policyholder her Attorney's Fees, in an
amount to be determined.
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