$17M MEGA Life & Health Insurance Settlement Biggest In Massachusetts History
According to a press release from the Massachusetts Attorney General's Office, the insurance companies sold health insurance plans to small businesses and individuals by packaging the products with association memberships in the National Association for the Self Employed (NASE), Americans for Financial Security (AFS) and the Alliance for Affordable Services (AAS). The Consent Judgment:
- Requires payment of more than $17 million in consumer relief, penalties and costs. The judgment consists of $13.35 million for consumer relief, $3 million in civil penalties and $750,000 in costs and attorneys fees.
- Bars a number of unfair and deceptive acts and practices that were subjects of the lawsuit, including deceptive advertising, predatory sales practices, failing to provide health benefits mandated by law, unfairly disclosing consumers personal information to third-parties and illegally requiring individuals and small businesses to join associations to gain access to health plans.
- Bans defendants from selling their health plans in Massachusetts for five years.
- Requires defendants to exit the Massachusetts health plan business completely although they are allowed to renew existing health plans with individuals and small businesses through 2012, giving current policyholders ample time to obtain other coverage.
MEGA's engaged in bad faith insurance practices everywhere
MEGA Life & Health has engaged in bad faith insurance practices in every state in nation. In fact, it settled a multi-state insurance investigation last year for $20 million. If you have, or had, insurance through one of these companies and have been denied your valid insurance claim, contact an experienced bad faith insurance attorney to discuss your situation and evaluate your options.