Massachusetts Revises Lawsuit Against Health Insurers For Denying Benefits Required By State Laws

Main Category: Health Insurance / Medical Insurance
Also Included In: Litigation / Medical Malpractice
Article Date: 30 Aug 2007 - 20:00 PST

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Massachusetts Attorney General Martha Coakley (D) on Thursday filed a revised complaint against MEGA Life and Health Insurance, Mid-West National Life Insurance and the two insurers' parent company HealthMarkets alleging that they denied services required by state law, the Boston Globe reports.

The suit builds off a complaint filed by former state Attorney General Thomas Reilly (D) in October 2006. It alleges that the companies denied services such as maternity care, cervical cancer screening, contraception, infertility treatment, mammograms and preventive care for children. About 30,000 people in Massachusetts are insured by the companies, Coakley's office said.

Coakley in a release said, "MEGA and Mid-West routinely mislead people about the benefits in their health insurance policies," adding, "These companies targeted individuals and small businesses looking for low-cost health insurance, but the coverage they provide is not what MEGA and Mid-West's advertising and sales agents make it out to be."

A HealthMarkets spokesperson in a statement said that the company "strongly disagrees with the allegations" and that it has been working with the attorney general's office for three years (Krasner, Boston Globe, 8/24).

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