• Skip to main content
  • Skip to primary sidebar
  • Skip to footer
  • Contact Us
  • Sponsor An Email
  • Post A Job
  • Merger & Acquisition Services

Agency Checklists

Massachusetts Insurance News & Job Opportunities

You are here: Home / Insurance News | Massachusetts / Mass. AG Sues UnitedHealth Over Deceptive Sales To Its Consumers In The Commonwealth

Mass. AG Sues UnitedHealth Over Deceptive Sales To Its Consumers In The Commonwealth

December 15, 2020 by AC Editor

Says Defendants Misled Consumers Into Buying Unnecessary Health Insurance Products

Attorney General Maura Healey has filed suit against three companies alleging that each misled consumers here in the Commonwealth into buying needless supplemental health insurance products. As a result, AG Healey argues that since 2011 more than 15,000 Massachusetts residents were cheated out of approximately $43.5 million. The three health insurance companies targeted in the the lawsuit are HealthMarkets, Inc. and its subsidiaries The Chesapeake Life Insurance Company, and HealthMarkets Insurance Agency, Inc. f/k/a Insphere Insurance Solutions, Inc

While the companies are based in Texas all three operated both in Massachusetts and many other states. UnitedHealth Group has owned these entities since 2019.

Agency Checklists, MA Insurance News, Mass. Insurance News

“Their business model was to dupe consumers into buying supplemental health insurance products, which they did not know about, did not want, or were misled into thinking were necessary or valuable,” said AG Healey. “The misconduct here is even worse, because HealthMarkets is a repeat offender. We are suing to recover the money taken from Massachusetts residents and ensure that this never happens again.”

According to the complaint filed in Suffolk Superior Court, the companies violated Massachusetts’ consumer protection statute as well as a prior consent judgement entered in this same court. The following is the AG’s explanation of the case as outlined in the official release:

“The AG’s lawsuit alleges that the companies deceived consumers both about their sales agents and the insurance products they were selling. It alleges that they used consumers’ need for traditional health insurance as a “trojan horse” to meet with them and sell unnecessary and limited value supplemental health insurance. The companies’ advertising deceptively claimed that their sales agents were objective, that their services were free, and that they represented all insurance carriers. The AG’s complaint alleges, however, that their agents were not objective, but were incentivized with higher commission rates to sell Chesapeake’s supplemental insurance. The complaint further alleges that those agents did not represent all carriers and sometimes did charge consumers fees.

The complaint also alleges that sales agents deceptively passed off supplemental insurance as major medical insurance or as part of major medical insurance, including by hiding it in bundles with major medical insurance. Other allegations include:

  • Illegally advertising their agents as insurance advisors, when they were not licensed as advisors;
  • Targeting consumers who had low incomes and were Medicaid-eligible;
  • Unlawfully selling supplemental health insurance as a substitute (rather than a supplement) for major medical insurance;
  • Making incomplete or unfair comparisons relating to their supplemental health insurance; and
  • Deceptively manipulating consumers’ emotions in order to sell supplemental health insurance.

According to the complaint, the companies’ misconduct is in violation of a 2009 Superior Court judgment enjoining them from engaging in many of these activities based on an earlier lawsuit brought by the Attorney General’s Office alleging that HealthMarkets, Inc. and two different subsidiaries had engaged in similarly deceptive practices related to sales of health insurance. “


Print Friendly, PDF & Email

Filed Under: Insurance News | Massachusetts, Insurers | News, Latest News Tagged With: Agency Checklists, insurance fraud, insurance fraud Massachusetts, mass ago, massachusetts insurance news, New England Insurance News, United Health insurance lawsuit

Primary Sidebar

Sponsored

Sponsored

MA Division of Insurance Announcements

Latest Agency Sales

Salem Five Insurance Acquires Cavanaugh Insurance Agency

Insurance Agency Mergers & Acquisitions in Massachusetts | Q3-2022

More Agency Sales

Career News

Michael Percy Appointed To Concord Group Board of Directors

Michael Percy Appointed To Concord Group Board of Directors

Layoffs At Two Boston-Based Insurtechs

Layoffs At Two Boston-Based Insurtechs

Massachusetts insurance news, MA Insurance News, Mass. Commissioner of Insurance Gary Anderson, NAIC 2019 Appointments

NAIC Names Its 2023 Committee Leadership

View More Career News

In Memoriam

In Memoriam: Nancy L. Perocchi, 1937-2022

In Memoriam: Peter J. Nobile, Jr., 1931-2022

In Memoriam: Nancy Jane A. Vajcovec, 1947-2022 | Agency Checklists

In Memoriam: Nancy Jane A. Vajcovec, 1947-2022

CAR News

Outgoing Gov Baker Signs Catalytic Converter Bill on Way Out

Road Safety Analysts Put Mass. In “Danger” Zone

Final Look 2022: The Massachusetts Private Passenger Auto Insurance Marketplace

View More CAR News

Massachusetts Law Updates

Insured’s $2 Million Claim For Loss Prevention Costs Scuttled By The Supreme Judicial Court

A look at the Supreme Judicial Court of Massachusetts’ ruling on Ken’s Foods’ common law reimbursement claim.

An Insured’s Underpayment of Loss Lawsuit Over Brookline Building Backfires

The Appeals Court recently affirmed a decision in Anwar Faisal et al. v. United National Insurance Company that reminds one of the saying, “Be careful what you ask for. You may get it.” In this case, the insured sued to get more money on a property damage claim, asking the court to rule on his […]

Failed Foray Into Massachusetts Ends In A Lawsuit For New York Agency Over Its Producer’s Understanding of Salary v. Draw

A case in point about what can go wrong when an agency, its officers, and a producer being onboarded, come to loggerheads and litigation ensues.

Harvard College Sues Zurich to Overturn A Late Notice Denial of A $15 Million Policy Claim

Late Policy Notice to Zurich Leads To Harvard’s Loss of $15 Million in Coverage

Summary Judgement for Zurich effectively dismissed Harvard’s lawsuit by The Court.

More Mass. Law Updates

DOI News

Facts & Figures For New England Insurance Departments & Insurance Producers | 2023

Massachusetts Insurance Commissioner Honored for Exceptional Leadership

DOI: Insurance Companies Must Renew MA Appointments by October 14th

The 2022 Home Insurance Report Part III | Policy Numbers by Massachusetts County

View More DOI News

Insurance Fraud

Walmart Will Pay $500k For Its Failure To Follow Workers’ Comp. Prescription Pricing Procedures

Former Insurance Adjuster Indicted in Connection with Stealing Identities of Four Victims of Merrimack Valley Gas Explosions

Phony Pumpkin Assault Claim Gets 3 Years For Insurance Fraud

Edgartown Masonry Company Owner Indicted for Workers’ Compensation Fraud

More Insurance Fraud News

Footer

Agency Checklists

Contact us

14 Summer Street
Suite 102
Malden, MA 02148
617-598-3800

Advertise on Agency Checklists

We offer a variety of ways to get help promote your company or product.

Announcements
Email Sponsorships
Partnerships
Custom Collaborations

*Affiliate Disclosure

Please note that any of Agency Checklists’ articles might contain one or more affiliate links. This means that any subsequent purchase resulting from these links may result in a commission for us, but at no additional cost to you. For example, as an Amazon Associate, Agency Checklists earns a commission from all qualifying purchases. By working with affiliates we can continue to keep Agency Checklists subscription free. Thank you for your support.

SEARCH OUR SITE

Explore Our Archives

Copyright © 2023 · Agency Checklists · All rights reserved.

 

Loading Comments...