Health Net of California Fined $1 Million

The California Department of Managed Health Care levied a $1 million fine against Health Net of California for not appropriately disclosing certain compensation-related information to the state. As a result, Health Net has agreed not to engage in any compensation practices linked to the results of rescission investigations. Health Net of California is a subsidiary of Health Net Inc., based in Woodland Hills. “We are sorry for any misunderstanding with the DMHC. It is important to note that we are currently abiding by the policy in the agreement,” said Health Net Chief Executive Jay M. Gellert. “Health care reform is aimed at solving the problem of providing universal coverage. We have supported Governor Schwarzenegger’s reform proposals from the start and they represent the best way to achieve this goal.”