Report: Bonuses paid for dropping sick patients

John Key stated that if elected National would promote privatised care for the elderly.(Travellerev) 

A health insurance company serving customers in a half-dozen states set out to drop hundreds of customers and paid lucrative bonuses to an executive in charge of eliminating coverage.

One customer is suing the company, Health Net Inc., after a company salesman pressured her to switch to a Health Net plan only for the company to cut-off her coverage in the middle of costly cancer treatment.

California small-business owner Patsy Bates was one of more than 1,600 customers who had their Health Net policies rescinded between 2000 and 2006 saving the company $35.5 million, the Los Angeles Times reports. Over the same period the senior Health Net analyst in charge of canceling policies received more than $20,000 in bonuses based in part on her meeting annual targets for revoking the coverage.

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