Beauty salon owner wins major legal settlement
Gardena beauty salon owner Patsy Bates was in the hospital awaiting surgery to remove a lump in her breast when an administrator told her that the surgery had been canceled. There was a problem with her insurance. After she agreed to pay her insurer, Health Net, three additional premiums, the company agreed to cover the operation. But in January 2004, as she was undergoing post-surgical chemotherapy, Health Net canceled her coverage, claiming she had misstated information in her application. Bates sued. Today, a judge in Los Angeles awarded the salon owner $9 million in damages.
Lisa Girion reports it was the first settlement of its kind and prompted Woodland Hills-based Health Net to announce it would abandon some of its controversial cancellation practices.
After hearing today's news, Bates closed shop early to drive to her attorney's office and meet with reporters. Tonight, the 52-year-old mother will go home to cook a birthday dinner for her daughter. She's not sure if she will go to work tomorrow.
--Jesus Sanchez
Photo: Rick Loomis / Los Angeles Times
