23 February 2008

How to make money in Medical Insurance

First thing you do is write a lot of policies and collect a lot of money. Then if any of the policy holders get sick enough to require large payments, encourage your agents to find flaws in the original policy and dump them. Any little flaw.

This is a time honored business practice among the dishonest: sell a product or service and then don't deliver it.

After all, if you are caught, all you have to do is provide the service that has already been paid for. There was no extra cost, no punishment, and in a certain number of cases, the customer was dead anyway.

Until now.

You have to read the whole article to see just how sleazy Health Net, the insurance company, was in this case. Then think about something else the article implies: this is standard practice.

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