Health Net to reinstate 926 dropped policyholders in California

Continuing California's crackdown on health insurers, Health Net Inc. has agreed to offer new coverage to 926 people whose policies it canceled after they got sick. Health Net signed a first-of-its-kind agreement with the California Department of Insurance, agreeing to pay $3.6 million in penalties, plus as much as about $14 million in reimbursements for medical charges that the insurer had refused to pay. The company did not admit to any wrongdoing, however.