BusinessWeek (October 10, 2005) by Sephen J Adler

By Sephen J Adler

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And Mrs. Henderson withheld material information concerning Mrs. ” As a result, the company believes it had the right to terminate both Hendersons’ coverage, though it chose to cut only Darlene’s. Moreover, Gedwed says David Henderson has received $90,000 in benefits from uici—not the $33,000 he claims to have been paid. The difference, says the Hendersons’ attorney Anthony Stuart, is that uici adds in discounts it receives as a member of a hospital CALIFORNIA network. A trial is SOME STRIDES Garamendi scheduled to begin in held hearings one big reason to get back in regulaCalifornia Superior into “illusory” tors’ good graces: The individual health inCourt in January.

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Still, last bers of individual policyholders, who use Soaring demand is one reason why December, California insurer PacifiCare ac- state regulators instead of corporate hr UnitedHealth paid $500 million in 2003 quired ams for $505 million. A PacifiCare departments, to file complaints. , executive says the company has moved Commissioner Garamendi held hearings problems and all. Since 1995, Golden Rule quickly to package ams’ low-end health in San Francisco on Sept. 21 into so-called has faced 15 investigations by insurance plans with the more comprehensive cover- “illusory” insurance policies that offer limofficials for aggressive sales tactics and age that it already offered.

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