USA
Today (7/22, Appleby) reports that HealthMarkets, "[a] health insurer
that sells mainly to the self-employed, agreed Monday to pay $20 million -- one
of the largest fines of its type -- to settle violations found by regulators in
a 36-state investigation." Spurred by several complaints, the investigation
"found that...HealthMarkets failed to properly train its sales agents, who
didn't always fully disclose the limits of its health policies to consumers, and
sometimes did not pay for medical services promptly." The insurance company "has
about 612,000 policyholders in 44 states through its subsidiaries: Mega Life and
Health Insurance, Mid-West National Life Insurance, and Chesapeake Life
Insurance." If the insurer "does not resolve its problems, it could face up to
$10 million in additional fines." Since the investigation, the company says it
"made many changes..., including calling all new policyholders to see if they
understand their coverage and improving sales agent training." According to
Securities and Exchange Commission documents, HealthMarkets "took in $1.6
billion and posted net income of $70.2 million" last
year.