Health Net Class Action Information Website


This website provides information to former and current subscribers and beneficiaries of health insurance plans of Health Net, Inc., Health Net of Northeast, Inc., or Health Net of New Jersey, Inc. (collectively the “Health Net”) regarding the existence and status of three class action cases brought against Health Net now pending in the United States District Court for the District of New Jersey before the Honorable Faith S. Hochberg in Newark, NJ. Health Net is related to an entity known as Foundation Health Systems; you may also recognize Health Net by its prior names, such as Physicians Health Services, PHS, or First Option Health Plan.  These lawsuits challenge the way Health Net paid claims for out-of-network services.


Plaintiffs and Health Net have entered into a settlement agreement which provides up to $215 million and other benefits including changes to Health Net’s business practices.  The proposed settlement was preliminarily approved by the Court on April 24, 2008.  The court also approves a plan for members to receive notice of the proposed settlement beginning on or about May 15, 2008. 


The members of the Health Net class actions include everyone who fits one of the following classes approved by the Court:


                        All persons in the United States who are, or were, from April 1997 to August 2004, subscribers or beneficiaries in any large or small employer plan, other than in a New Jersey small employer plan, who received medical services or supplies (including inter alia, surgery, anesthesia, and the like) from an out-of-network provider and for whom Defendants made reimbursement determinations less than the providers’ actual charge.

 [“McCoy Class”]


                        All persons in the United States who are, or were, from July 1995 through August 2004, subscribers or beneficiaries in any New Jersey small employer plan, who received medical services from an out-of-network provider and for whom Defendants made reimbursement determinations less than the providers’ actual charge.

 [“Wachtel Class”]


                        All persons in the United States who are , or were, from September 1, 2004 through July 31, 2007 members in any large or small employer plan insured or administered by Health Net, who received medical services or supplies (including, inter alia, surgery, anesthesia, and the like) from an out-of-network provider and received reimbursement less than the providers’ billed charge that was determined  by Health Net, Guardian or a Third Party Vendor applying Health Net’s ONET Claims Practices, including the use of Ingenix data.  The RICO Class includesindividual and family plan members.
 [“Scharfman Classes”]



By means of this website, class members can obtain information about the litigation and settlement of the Health Net Class actions and can provide updated contact information to the attorneys appointed by the Court to represent the classes (who will maintain the confidentiality of this information to the extent provided in the confidentiality notice included on this website) and can learn of developments in these lawsuits.


This website was created in connection with class actions involving out-of-network reimbursement issues.  Accordingly, this website is intended solely to provide information to potential class members regarding the class actions pending against Health Net.  It is not intended to provide medical advice, diagnosis or treatment.  If you believe you require medical attention, contact your physician.  Any questions regarding medical advice, diagnosis or treatment options under your health insurance should be addressed to your healthcare provider, benefits coordinator or health insurer.