A U.S. jury has found that a broker compensation program, which steered customers to one of two competing full-service hospitals in Stark County, Ohio, was contrary to the state’s Pattern of Corrupt Activity Act.
Mercy Medical Center and Aultman Hospital had a fierce competition to serve their community’s health care needs.
Aultman had the advantage of being owned by the Aultman Health Foundation, parent company of the McKinley Life Insurance Company. Mercy Medical Centre did not have an ownership affiliation with an insurance company and did not accept patients under the AultCare insurance program.
Aultman created a bonus program for brokers in 1997 to increase membership in the AultCare insurance program. The Conversion Support Program (CSP) was offered to a select group of brokers who received up to $200 for every “life” the broker converted to AultCare.
Aultman paid the brokers 60% of the bonus in the first year if the broker’s client selected AultCare as their health insurance provider. The remaining 40% of the bonus would be paid if the client renewed with AultCare for two additional years (or withdrawn if the client did not renew).
The brokers were required to sell a minimum amount of business to qualify for the bonus, and had to maintain a specified retention rate. The broker was penalized with fines of $40 per “life” if the broker failed to retain up to 97% of their AultCare lives per year.
Brokers participating in the CSP were required to enter into confidentiality agreements where the broker could not inform their clients they were receiving compensation from Aultman if the client chose AultCare as their insurance provider. Aultman waived the confidentiality provision in 2004.
Mercy sued AultCare, claiming the broker commission program was a bribery scheme to get brokers to send business to the Aultman Hospital. Aultman said there was nothing irregular por proper about the broker compensation scheme.
A jury found in favour of Mercy, awarding Mercy more than $6.1 million in damages. The Ohio Supreme Court rejected Aultman’s appeal.
----------------------------------------
Ghost whisperer star considers insuring breasts
Buying insurance is often seen as a grudge purchase, but some celebrities seem to revel in protecting assets particularly close to their heart.
One such celebrity is The Client List actress Jennifer Love-Hewitt, who told a US TV show she was thinking about insuring her 36C breasts for $5 million.
“I need, like, an insurance invitation,” she said during an interview with USA Today. “If somebody was like: 'Hey, you know what? We would like to insure your boobs for $2.5 million,' I'd be like: 'Do it. Love it! Why not?’”
Love-Hewitt isn’t the only one protecting her assets. She joins a long list of celebrities who have insured their money-spinning body parts:
Daniel Craig: The Bond star reportedly insured his chest for $8 million.
Heidi Klum: The German supermodel has insured her pins for a cool $2.2 million, although one is worth slightly less than other because of a small scar.
David Lee Roth: The Van Halen wild-haired rocker took out a $1 million policy on his sperm – just in case he impregnated a fan, who consequently tried to file a costly paternity suit.
Jennifer Lopez: The R’n’B star and actress’ derriere is probably more famous than her songs and movies. J-Lo insured her money-spinning rear for a whopping $27 million.
David Beckham: It’s no surprise to learn that one of the world’s most famous soccer stars insured his legs in 2006. But the amount may have raised an eyebrow or two: the $70-million policy is said to be one of the largest personal insurance policies in sporting history.
