January 8, 2025
The historical past of this case dates again to 2006 when the then-Lawyer Basic sued HealthMarkets for reported deceptive advertising and marketing techniques.
A decide has ordered three UnitedHealth-owned insurance coverage firms to pay greater than $165 million following a lawsuit that alleges the businesses misled prospects into paying for extra medical insurance.
Suffolk County Superior Court docket Choose Helene Kazanjian mentioned HealthMarkets, acquired by UnitedHealth in 2019, and two subsidiaries deceived 1000’s of Massachusetts prospects into shopping for supplemental insurance policies. Choose Kazanjia mentioned the insurers deliberately focused “weak prospects who may least afford their merchandise” and described their actions as “significantly egregious,” InsuranceNewsNet reported.
The lawsuit in opposition to UnitedHealth firms dates again to 2006, when the then-Lawyer Basic accused HealthMarkets of deceptive advertising and marketing techniques. The state reopened the case in 2020, alleging that the corporate violated the state’s shopper safety legislation. The state charged the insurance coverage firms with deceptively main shoppers into shopping for greater than $43.5 million in insurance coverage merchandise and violating a previous consent judgment that protected shoppers.
Choose Orders Insurance coverage Firm To Pay Thousands and thousands Following Lawsuit
The Superior Court docket discovered the insurance coverage firms answerable for violating the consent judgment and the Massachusetts Shopper Safety Act in 2022. In keeping with the courtroom, the insurance coverage firms deceived shoppers about their gross sales brokers, insurance coverage merchandise, commercials that claimed gross sales brokers had been goal, and misrepresentation that gross sales brokers represented all insurance coverage carriers concerned within the go well with when they didn’t.
All three firms are based mostly in Texas however have operated in Massachusetts and different states. The courtroom ordered the businesses to pay $50 million in restitution for shoppers and $115 million in civil penalties.
The decide’s ruling comes after UnitedHealth CEO Brian Thompson was murdered exterior a New York Metropolis resort. Since his dying, there was an outpouring of criticism from Individuals towards the insurance coverage trade. Social media customers voiced their frustrations a few “damaged system,” accusing insurance coverage firms of denying medical claims.
In a press release to Insurance coverage NewsNet, UnitedHealthcare mentioned it plans to attraction the judgment.
“We disagree with the Massachusetts courtroom’s newest ruling within the litigation involving the HealthMarkets firms,” a spokesperson mentioned. “The elemental errors on this ruling compound these already made by the trial courtroom earlier on this case and have resulted in a call unsupported by the proof and opposite to established Massachusetts legislation.”
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