June 26, 2022

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State suing health insurance companies for cheating Massachusetts residents

BOSTON (WWLP) – Three health insurance companies are being sued by the state Attorney General for misleading consumers into purchasing supplemental health insurance products of limited value.

According to Massachusetts Attorney General Maura Healey’s Office, more than 15,000 Massachusetts residents have spent over $43.5 million in the last nine years on what they thought was traditional health insurance.

The AG’s Office filed against HealthMarkets, Inc. and its subsidiaries The Chesapeake Life Insurance Company, and HealthMarkets Insurance Agency, Inc., and Insphere Insurance Solutions, Inc.

The allegations against these organizations include:

  • Deceptively passing off supplemental insurance as major medical insurance or as part of major medical insurance, including by hiding it in bundles with major medical insurance. 
  • 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;
  • Deceptively manipulating consumers’ emotions in order to sell supplemental health insurance

Consumers who were involved and would like to provide information about HealthMarkets or Chesapeake’s sales of health insurance in Massachusetts can call 617-963-2580.