Aetna fined $1M for issuing unapproved disability, life insurance
Aetna has been fined $1 million by the Washington state insurance department because it has issued more than 7,000 health, disability and life insurance policies that failed to meet state requirements.
Insurance Commissioner Mike Kreidler said Aetna sold many of its policies to out-of-state employers or through out-of-state trusts. Others didn't include certain coverage mandated by state law, didn't refer to the state appeals and grievance process or failed to obtain approval for rates and benefits, The Seattle Times reported.
Because these policies didn't comply with state law, Kreidler's office asserted they were never official and even introduced significant risk to consumers of these health plans, reported Live Insurance News.
"All insurers must comply with state law, and most of them do," Kreidler said in a statement. "I hope that this fine and compliance plan resolves these problems with Aetna."
Aetna agreed to the fine and said it will work to resolve the identified problems.
Aetna to pay $120M over underpaid out-of-network claims
Aetna fined $1.5M for violating autism, contraception coverage
Aetna fined $1M for not covering services, false advertising
Docs claim Aetna booted them from network in retaliation for lawsuit
Hospital group sues Aetna for allegedly denying out-of-network access