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California seeks punishment for health insurers that wrongly deny coverage (www.rawstory.com)

submitted 5 months ago by BrikoX@lemmy.zip to c/usa@midwest.social

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When Colleen Henderson’s 3-year-old daughter complained of pain while using the bathroom, doctors brushed it off as a urinary tract infection or constipation, common maladies in the potty-training years.

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[–] WoodScientist@sh.itjust.works 12 points 5 months ago (2 children)

If an insured denies a rightful claim, they should have to pay for it three fold. They should have to pay for the actual treatment. Then an equal amount should be paid to any lawyer or patient advocate. And the company should have to cut a check for an equal amount for the patient.

The problem is right now there's no downside to wrongfully denying a claim. Worst that happens is that insurance later ends up paying what they would pay anyway. There needs to be a strong financial disincentive to wrongfully denying claims.

[–] BrikoX@lemmy.zip 7 points 5 months ago (1 children)

And if the insured dies because of it, does that mean first degree murder charge for the company's CEO or what?

[–] socphoenix@midwest.social 2 points 5 months ago

Yes