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Insurance Premium Overcharges

Portland, ME: (Apr-04-08) State regulators brought charges against MEGA Life and Health Insurance Co., a unit of specialty insurer HealthMarkets, alleging that the unit overcharged customers in Maine from 2004 to 2007. The company is a division of North Richland Hills-based HealthMarkets, formerly known as UICI, which sells individual health insurance policies throughout Maine, primarily low cost insurance plans with limited benefits to self-employed people and their families.

As part of a settlement agreement entered into by both sides, sources stated that MEGA agreed to pay a $1 million fine and $4.6 million in restitution to customers to resolve the allegations. HealthMarkets executives indicated the agreement was the result of mediated negotiations with state regulators, and will ensure that the company functions in compliance with Maine's rules. The deal is said to affect almost 10,000 policies. [STAR-TELEGRAM: UNIT OF INSURER PAYS MILLIONS]

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Published on Apr-7-08


Posted by

We were told by our agent that all preventative health care visits would be covered for our children. This is not the case as we have over $1000 in bills for preventative care in the past 8 months. We also declined membership to the NASE and they continue to bill us monthly even after asking them to stop. The amount covered by MEGA is a fraction of what we are required to pay. We also purchased dental and I was told that cleanings would be covered. My daughter and I went to get our teeth cleaned and I got a bill for $200. I would have been better off paying out of pocket for all of my medical bills!

Posted by

My husband and I were paying $500 a month for a policy that did not pay out. We had to pay our primary health physician $1000 for a routine check up because Mega Life did not cover the visit. We would have been better paying out of pocket for our own doctor visit than paying for this worthless policy and the price of the visit. We were told repeatedly that our policy included one visit a quarter to our PCP and any visits after that would be a discounted rate. Obviously, not so.


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