Newsletter | Mar/Apr 2007

Update: Health Net Lawsuit
by Janet Crane

Dear OWA Steering Committee:

For your information, we received a proposal from the Mediator for the Health Net affair to settle our case, continuing the plan under the same terms as we have had from the beginning. I have signed this agreement. As Murphy's Law would have it, Health Net has just changed one of its lawyer representatives so there will be a delay until Health Net looks at it. So they could reject it, or alter it, but even receiving a proposal is progress.

Under this proposal, the rates will go up to market rate since they have been frozen since the affair began. The rates are to be those of a guaranteed Association with the same risk factor that we had before, which is what we would want. But rates have continued to go up strongly since the injunction went into effect. So there will be some sticker shock if the proposal is accepted by Health Net and the new rates go into affect.This could be as soon as April 1 but that assumed that Health Net would deal with the proposal promptly, which doesn't appear likely.

Anyway, I consider this positive progress.


We heard this morning from our attorney that Health Net has accepted the mediation agreement and that OWA's group will be back to normal.

The paper work will take about a month to complete, but the attorney thought that Health Net may have been in touch with our agent about starting the current premiums as of May 1, so brace yourself.

Our premiums have been frozen for something like three years so the increases to current rates will be steep. According to the agreement, our group has maintained its rating as having a median claim history and is paying median rates, but that doesn't avoid a sharp increase.

We will let you know the new rates as soon as possible.

Kudos to Janet Crane for her efforts and her success!