The court of California has awarded Patsy Bates over $9 million in the case versus Health Net. The problem began in 2004 when Patsy was diagnosed with breast cancer. Assuming she would receive coverage, Patsy went on to receive treatment and $129,000 later, the doctors refused to continue treatment. Health Net cancelled her policy and Pansy was left to pick up the tab on her own. The 52 year old hair dresser eventually sought treatment through a state-funded program.

            Not only did the court award Pansy $8.4 million and $750,000 for emotional distress, but to resolve the issue, Health Net also put a halt on their cancellation policy. Health Net is working hard to improve the service they provide to their customers. As a result, they are working to develop a third party to analyze these special cases of canceling a customer’s health insurance policy. This is a common practice with many health insurance companies. It is specifically designed to analyze and discover clients who refrained from including all of their medical history during the underwriting process. As a result, Health Net is reviewing the health insurance underwriting process and training of both agents and brokers.