State suing health insurance companies for cheating Massachusetts residents


BOSTON (WWLP) – Three medical insurance corporations are being sued by the state Lawyer Basic for deceptive shoppers into buying supplemental medical insurance merchandise of restricted worth.

In keeping with Massachusetts Lawyer Basic Maura Healey’s Workplace, greater than 15,000 Massachusetts residents have spent over $43.5 million within the final 9 years on what they thought was conventional medical insurance.

The AG’s Workplace filed towards HealthMarkets, Inc. and its subsidiaries The Chesapeake Life Insurance coverage Firm, and HealthMarkets Insurance coverage Company, Inc., and Insphere Insurance coverage Options, Inc.

The allegations towards these organizations embody:

  • Deceptively passing off supplemental insurance coverage as main medical insurance coverage or as a part of main medical insurance coverage, together with by hiding it in bundles with main medical insurance coverage. 
  • Focusing on shoppers who had low incomes and had been Medicaid-eligible;
  • Unlawfully promoting supplemental well being insurance coverage instead (moderately than a complement) for main medical insurance coverage;
  • Making incomplete or unfair comparisons referring to their supplemental well being insurance coverage;
  • Deceptively manipulating shoppers’ feelings with a view to promote supplemental well being insurance coverage

Shoppers who had been concerned and want to present details about HealthMarkets or Chesapeake’s gross sales of medical insurance in Massachusetts can name 617-963-2580.


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