Released: October 11, 2007

Insurer to pay up to $500,000 in probe

Source: Julie Appleby, USA Today

Insurer HealthMarkets — under investigation by 36 states and facing a lawsuit by the Massachusetts attorney general — has agreed to pay up to $500,000 to settle concerns raised about its business practices in Delaware.

The Texas-based firm, whose insurance subsidiaries include Mega Life and Mid-West National, could reduce the fine to $100,000 if it complies with all the terms of a settlement released Wednesday.

In a written statement, the company says it has already complied with many of the requirements of the Delaware settlement and does not expect to pay more than $100,000 as a result. The company said it has “proactively implemented and continues to implement a wide range of changes and improvements designed to enhance customer service, customer education and agent training.”

Read Full Article: Insurer to pay up to $500,000 in probe