Health Net to settle over canceled coverage

Health Net has agreed to pay California hospitals at least $1.95 million for care delivered to patients whom the insurer later dropped. The settlement, pending a judge's approval, resolves a lawsuit filed by California hospitals to recover payments they say the company improperly withheld after canceling the coverage of hundreds of patients. Under that deal, Health Net will pay as much as $14 million to settle claims by 800 former policyholders whose coverage was dropped after they submitted substantial medical bills.