girion's reporting revealed that another california insurer, healthnet, took it even further. >> what some people describe as a smoking gun was the discovery, through litigation, that healthnet had actually paid bonuses to their employee who was in charge of recisions, based in part on how many recisions she carried out in a given year. and in some years, it was how many recisions she carried out, and in other years, it was how much money those recisions allowed the company to avoid paying. >> narrator: girion's articles caused something of a pr disaster for the california health insurance industry. they triggered state regulators to go after the big players. and recently, several insurers including healthnet, blue cross and blue shield have agreed to a major settlement reversing thousands of recisions and reinstating policyholders, while not admitting any fault. but the practice, which affects at least 1 in 100 policyholders in the individual market, continues across the country. as for jennifer thompson, she's now pretty much uninsurable in the private market in california, but she'

. >> and 4,000 nurses said to hold a strike over failed contract negotiation was sutter healthnet work. nine hospitals are affected but more than half of the nurses work in summit centers in berkeley and oakland. hundreds of nurses have been fired and management pledges to lock out nurse who's strike. and they were locked out nine days and one patient died after being treated by a replacement nurse. >> a san francisco police officer felt sickening affects of pepper spray after a scuffle with a man suspected of failing to pay his fair on muni. and he walk wade, but became violent when police confronted him on the platform. abc 7 talked to officer who's was pepper sprayed. >> they tried to detain him, he decided he was going to fight. and that is how this ensued. >> you've got a little bit today for yourself. right? >> yes. i did. i should have just. >> and police arrested the suspect after a short chase. a woman was also okay after being hit with pepper spray. >> more still to come at ak coming up a school district is getting creative in these tough times. how it's managing to build fou