Better Business Bureau Gives Mega Insurance Company Lowest Rating

The Better Business Bureau, a private non-profit organization which provides businesses and consumers with information on complaints filed against companies, has given Mega Life Insurance Company (Mega) its lowest possible rating.

Why the low rating?

Mega and its parent company, HealthMarkets, Inc., have been the source of controversy for many years with 36 states currently investigating their practices. In addition to these investigations, the companies have faced penalties in Texas, California, Delaware, Colorado, Pennsylvania, Arizona, New Jersey, Illinois, Maryland, Connecticut and Delaware. The latest issue in Indiana seems to be just more of the same. According to Fort Wayne Indiana’s Frost Illustrated Newspaper:

Mega Life and Health Insurance Company/HealthMarkets Inc. has had 187 complaints filed against them in Indiana. Complaints concern selling practices, credit and billing disputes, refund practices and service issues. Complainants allege sales people misrepresented coverage, did not pay claims in a timely manner, and did not stop debit of premiums after policies were canceled and that refunds were not made in a timely manner. The company has the BBB's lowest rating.

The source of the controversy

Mega’s sales agents have been accused of aggressive sales tactics and misleading consumers on what their policies actually cover. In case after case, consumers have complained that claims for even the most basic services, such as lab tests, doctor visits and prescriptions have been denied by the companies – even though sales representatives told them otherwise.

That’s what happened to a California couple in their late 60’s. According to an article in Business Week, the retired couple purchased health insurance through Mega at over $400 per month. They were told that they would have $1 million in coverage. However, when both became seriously ill and racked up over $200,000 in medical bills, Mega only paid a fraction of it and also accused the couple of lying on their application – something the couple adamantly denies. Unfortunately, many other policyholders have reported being in the same situation as this couple after purchasing insurance from Mega.

Insurance companies that don’t treat their policyholders with good faith and deal with them fairly may have acted in bad faith. Consumers who purchased insurance from Mega, 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.

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