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Federal Contractor Misconduct Database (FCMD)

The federal government routinely awards contracts to companies with histories of misconduct, including contract fraud and other violations. POGO believes that providing this website will help to improve contracting decisions and increase public knowledge of how the government spends billions of taxpayer dollars each year. Read more…

Claims Handling and Rescission Practices

Health Net agreed to pay the California Department of Insurance $3.6 million in penalties, $14.2 million in reimbursement and $7.2 million in waived insurance premiums and agreed to reinstate healthcare coverage of 926 people, whose individual and family policies were rescinded during the past four years. Health Net also agreed to establish an independent, third-party review process for future rescission decisions and make significant changes to its application form, underwriting process, agent training, and notification of consumers under investigation for information on their applications.

Misconduct Type
Health
Enforcement Agency
State/Local
Contracting Party
None
Court Type
Administrative
Disposition
Settlement
Date of Announcement
9/12/2008
Contractors Involved Penalty
Total
Health Net, Inc. $25,000,000
Further Information Released
Accusation 11/4/2008
CDI Press Release 11/4/2008
Stipulation and Waiver 11/4/2008

See also:

Federal Contractor Misconduct Database