When Is Healthcare Coverage Not Worth The Premiums?
In May of 2007, Delaware regulators prepared a report that alleged that Mega Life Insurance Company, a private healthcare company with a reputation of providing insurance that may not cover even the most basic medical services, sold policies in the state that were not worth the premiums that consumers paid. The report accuses the company of not providing consumers with adequate information to make an informed choice and of enrolling some policyholders as individuals even when they could have received better rates under a group policy. Regulators are still looking into the matter.
Massachusetts is also currently at odds with Mega Life. In fact, the state has had several issues with the insurer over the years and the Attorney General recently filed a lawsuit against the company for its pricing of policies in the state, among other things. The suit alleges that Mega spent less than 50% of its annual premium revenue on medical care in a three year period, while other insurers spent over 75% in the same period.
And many, many more
Delaware and Massachusetts are not the only states feuding with Mega. Seven states have fined the insurer and over 30 others are investigating the company in a joint effort. Attorney Generals in other states have acknowledged that Mega has changed the way they do business in certain areas, such as using agents that work more on closing the deal than they do on providing accurate information.
While that is a positive aspect, consumers who purchased insurance from the company, and then had valid claims denied, are entitled to receive those benefits. If you are one of those consumers, contact an attorney who understands insurance matters. To contact an attorney near you, click here.