HealthMarkets facing multistate probe

Sep 06, 2007

Insurance regulators in 36 states are investigating the sales practices of two insurance companies owned by HealthMarkets, a report says.

Massachusetts Attorney General Martha Coakley last month charged Mega Life and Mid-West National of deception and unfair practices for allegedly not telling customers that standard health insurance policies didn't cover things like office visits, prescription drugs or chemotherapy, USA Today said Wednesday.

The company has been fined by seven states in the past five years.

HealthMarkets Chief Executive Officer William Gedwed, who took over in 2003, said the company denies and disagrees with the allegation in the Massachusetts attorney general's lawsuit.

"From at least 2003 on, we've put a tremendous amount of effort into ensuring we do things the way regulators want," he said.

Gedwed said HealthMarkets began making follow-up phone calls to new customers starting in 2005 to make sure they understood their policies, the newspaper said.

Copyright 2007 by United Press International

Explore further: German thalidomide maker wins appeal in Spain compensation case (Update)

add to favorites email to friend print save as pdf

Related Stories

Google profit dips to $2.8 bn

1 hour ago

Google said Thursday its profit in the past quarter dipped slightly from a year earlier, even as revenues for the technology giant showed a sharp increase.

Shrinking resource margins in Sahel region of Africa

2 hours ago

The need for food, animal feed and fuel in the Sahel belt is growing year on year, but supply is not increasing at the same rate. New figures from 22 countries indicate falling availability of resources per ...

Recommended for you

New MCAT shifts focus, will include humanities

Oct 20, 2014

(HealthDay)—The Medical College Admission Test (MCAT) has been revised, and the latest changes, including more humanities such as social sciences, are due to be implemented next April, according to a report ...

User comments : 0