Mega Insurance Co.’s Broken Promises Leave New Parents Broke

Imagine purchasing health insurance for the sole reason of wanting to have a child. Your agent tells you that you’re covered, but that there is a 12 month waiting period. So, you wait. Finally, your child is on the way and life is good – until your insurance company denies the very claims they assured you would be covered!

You’re ABSOLUTELY covered!

That’s exactly what happened to a Colorado couple. Being self employed, they signed up for health insurance through Mega Insurance Company. Their agent told them that they had full medical coverage as they were being grouped with other self employed people to get a good rate. The couple specifically asked the agent about pregnancy coverage. They were told that pregnancy was covered under the plan, but not for one year. The couple waited the year, became pregnant and began submitting their medical bills for reimbursement.

Sorry - you’re NOT covered!

The couple’s accumulated medical bills started being denied by Mega one after another. They contacted Mega and were told that the ‘pregnancy box’ on their application was not checked and therefore, they did NOT have coverage. Furthermore, even if the box had been checked, Mega has a 24 month waiting period, so they wouldn’t have been covered anyway. The agent, now long gone, promised them the world when trying to make the sale, but delivered absolutely nothing in the end.

As a result, the couple – now with an infant – couldn’t pay their medical bills and now have bad credit. According to reports, Mega offered the couple $3,000 to settle the claim – as long as the couple signed a waiver absolving them of any future claims or bad faith lawsuits.

How to avoid this situation

Companies such as Mega Insurance have been highly criticized for focusing agents’ training on making the sale and less on what their product actually covers. Hundreds of Mega policyholders have reported similar accounts of agents telling them anything they wanted to hear – just to make the sale. You can avoid this situation by doing a bit of research on the company before signing up. Check with your state’s insurance department or simply do a ‘Google’ search on the company. If you do decide to go with the company, have the agent go over the policy with you to make sure that you’re getting the coverage you desire.

If you feel that your insurer has acted in bad faith, by all means, contact an attorney whose practices focuses in this area. They understand how insurance companies operate. To contact an attorney near you, click here.

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