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MANDATED BENEFITS SETTLEMENTS LEAD TO PENALTIES FOR THREE INSURERS
October 31, 2006
UniCare Health and Life Insurance Company will pay $28,000 in penalties and restitution, and New England Life Insurance Company and John Alden Life Insurance Company will each pay $5,000 in penalties under settlements filed Tuesday in Suffolk Superior Court and announced by Attorney General Thomas Reilly. In the case of New England Life and John Alden, the companies, which did not face consumer complaints, will clarify language regarding mandated benefits coverage, according to Reilly’s office, which had launched an investigation into whether insurers provide statutorily required benefits. In UniCare’s case, the company will clarify coverage language and pay $23,000 in restitution in connection with the denial of coverage for pre-existing health conditions and outpatient birth control, according to Meredith Baumann, a spokeswoman for the attorney general. According to a press release from Reilly’s office, he is negotiating settlements with several other health insurance companies. The AG has also posted a consumer advisory on his web site – www.ago.state.ma.us - to inform consumers of their right to certain benefits.
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