BEIJING, Feb. 25 (Xinhuanet) -- A U.S. woman got 9.4
million U.S. dollars in a case against her health insurer that canceled her
medical coverage when she was undergoing treatment for breast cancer, according
to media reports Sunday.
Patsy Bates, a hairdresser, was dropped by her
insurer Health Net in January 2004. Then she was stuck with more than 129,000
U.S. dollars in medical bills and was forced to stop chemotherapy for several
months until she found a charity to pay for it.
Bates had health insurance with another company for
several years before a Health Net broker solicited and enrolled her in an
individual insurance policy in August of 2003.
Bates was diagnosed with breast cancer a month later,
and began chemotherapy treatments but had just three of eight planned treatments
when Health Net pulled the plug, contending she had lied about her weight and a
heart problem on her application.
"It's hard to imagine a situation more trying than
the one Bates has had to endure," arbitration judge Sam Cianchetti wrote in the
decision. "The rug was pulled out from underneath, and that occurred at a time
when she is diagnosed with breast cancer, one of the leading causes of death for
women."
She ordered Health Net to repay Bates' medical bills
while providing 8.4 million dollars in punitive damages and 750,000 dollars for
emotional distress.
Bates said she screamed and thanked the lawyer when
she heard the news of award. "I thanked God," she said, "I praised the Lord."
Health Net said in a statement that, while it does
not agree with some of arbitration judge Sam Cianchetti's conclusions, it will
immediately adopt a review process for all policy cancellations.
Health Net Chief Executive Jay Gellert ordered an
immediate halt to cancellations and said that the company would be changing its
coverage applications and retraining its sales force.
"I felt bad about what happened to her," he said. "I
feel bad about the whole situation."
According to media reports, Health Net's still has
three other cancellation lawsuits pending in California, including a proposed
class action mounted by William Shernoff, Bates' lawyer. That case seeks damages
on behalf of 1,600 people whose policies were allegedly illegally canceled over
the last four years.
(Agencies)