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The Business of Not Paying Claims

December 28, 2007

Death by Profit Margin

Insurance companies make money by finding ways to not pay claims. That’s the truth of it. This past week, we sadly saw the result of this in the death of Nataline Sarkisyan. From the CA Nurses Association: On Dec. 11, four leading physicians, including the surgical director of the Pediatric Liver Transplant Program at UCLA, wrote to CIGNA urging the company to reverse its denial. The physicians said that Nataline “currently meets criteria to be listed as Status 1A” for a transplant. They also challenged CIGNA’s denial which the company said occurred because their benefit plan “does not cover experimental, investigational and unproven services,” to which the doctors replied, “Nataline’s case is in fact none of the above.”

The CA Nurses Assoc. organized a massive protest against Cigna’s spreadsheet-based decision, but the turnaround from Cigna came too late for Nataline, who passed away without ever receiving her transplant. C&L has news video on the story, and it is absolutely heartbreaking.

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