Following multiple and habitual violations of Rhode Island’s Small Employer Health Insurance Availability Act since 2004, MEGA Life & Health Insurance Company has reached a settlement with the State’s Health Insurance Commissioner for more than $2 million. Pursuant to the settlement agreement, MEGA Life & Health must pay $2.3 million in restitution to approximately 5,500 self-employed Rhode Islanders due to charging excessive membership fees and premiums, wrongfully denying coverage for pre-existing conditions, and failing to provide equal coverage among its eligible health insurance customers, among other violations.
Rhode Island is not the only state that has accused MEGA Life & Health Insurance Company of violating state laws enacted to regulate the industry and to protect consumers against bad faith insurance practices. In 2008, HealthMarkets, Inc. and its subsidiaries [MEGA Life & Health Insurance Company, Mid-West National Life Insurance Company of Tennessee, and Chesapeake Life Insurance Company] settled a multi-state bad faith suit in the amount of $20 million for wide-spread and abusive practices. Many states and individual policyholders have also pursued independent actions against HealthMarkets and its affiliates.
If you have concerns about your insurance company’s compliance with state laws or the terms of a life, health, or other insurance policy, you should immediately contact an experienced life insurance attorney about your case. The Life & Property Insurance Law Offices of Heather D. Lee, Esquire offer free consultations on all life and property insurance matters.