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Appeals court finds Health Net in the wrong.
In 2003, Health Net wanted to end coverage for the San Francisco Trial Lawyers Association, claiming that the group was not large enough to qualify for coverage. A state appeals court ruled that Health Net of California must continue to insure the lawyers association unless the lower court or a state agency rules otherwise.
Health Net's dispute is that the SFTLA is not a guaranteed association (more than 1000 members) and therefor the group does not qualify for insurance. The argument is that Health Net never stipulated that it would not issue insurance to smaller groups. Because Health Net could not supply evidence that such issuance is illegal, the appeals court said that the lower court ruled correctly.