Health Insurance Company Doing Wrong

You live in Grand Prairie, Arlington, Fort Worth, Dallas, Weatherford, or anywhere else in Texas and your health insurance company does you wrong; does it happen to others?
The Fort Worth Star-Telegram ran an article on April 19, that highlighted a health insurer based in North Richland Hills, Texas. This North Texas insurance company has had many complaints filed against it by its’ customers.
The title of the article is, “Health Insurer Based In North Richland Hills Facing Many Customer Complaints.” The article is written by Dianna Hunt.
The article highlights the case of David Self, one of this companies insureds. The company is Mega Life and Health Insurance. Self and others have filed more than 150 complaints in the last two years with the Texas Department of Insurance complaining of Mega and other subsidiaries of this company known as HealthMarkets, Inc.
It appears more than 30 other states have filed complaints against this company. This company was known as UICI until it was acquired by private investors. Some of its subsidiaries are Mega, Mid-west National Life Insurance Co. of Tennessee, Chesapeake Life Insurance Co. and HealthMarkets Insurance Co.
The complaints are all similar. The policy holders pay premiums but the health insurance company is not paying bills timely or in some cases, not paying at all. The states of Alaska, Washington, Texas, and two dozen others began investigations into Mega and Mid-West alone. These investigations resulted in the company agreeing to pay a $20 million penalty in one case in 2008, and $17 million in 2009, for settlement of another case.
HealthMarkets brought in a management team in 2008, headed up by a former New York Life executive.
The company also created a new subsidiary this year called Insphere Insurance Solutions, and began selling their insurance products through independent agents.
At one time or another, all businesses including government agencies and even non-profit organizations have complaints filed against them. The government example is obvious but the Catholic Church and organizations such as the Boy Scouts of America and the YMCA, also get complaints filed. The lesson from this article is, 1) be aware that insurance companies will treat you wrong at times, and 2) check to see how often these problems occur with a company you are looking to do business with. The Texas Department of Insurance can answer lots of questions regarding complaints filed against insurance companies doing business in Texas.