HMO Pays Staffers to Drop Sick People

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Virtually all the Democrats running for president have endorsed health care proposals that maintain a major role for private insurance companies. Much of their rhetoric suggests that if we could just get everyone health insurance, then all will be well. But the debate continues to ignore the horror stories like the one reported in the L.A. Times Friday.

A private insurer paid $20,000 in bonuses to an underwriter for dropping coverage for sick people, including a hairdresser who was half way through chemo treatments for cancer. She was left with $200,000 in medical bills as a result. Meanwhile, the company, Health Net, saved $35 million by cutting off 1,600 people who had made a major medical claim. Built into the system were performance bonuses for employees who dropped the most and the sickest patients. The widespread practice suggests that Americans need a lot more than an insurance card to guarantee access to medical care when they most need it.

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