December 27, 2012 at 11:06 AM
Aetna fined $1 million for insurance violations
Washington State Insurance Commissioner Mike Kreidler has fined Aetna Life Insurance Company $1 million for issuing more than 7,000 health, disability and life-insurance policies to Washington state residents that charged unapproved rates or did not meet other state legal requirements.
In some cases, the policies were sold to out-of-state employers or through out-of-state trusts. The fine also included medical and dental plans with unapproved rates covering Nordstrom executive-level retirees.
Some policies did not include state-mandated coverage or refer to the state appeals and grievance process, as required. In some cases, rates and benefits had not been approved.
The state insurance office said Aetna has agreed to pay the fine, which covers several types of policies filed since 2005. The company has also agreed to a compliance plan designed to prevent similar problems in the future, Kreidler’s office said.
Aetna, in a statement, said it had self-identified issues concerning some of the plans. “Aetna takes our responsibilities to our members very seriously but we do sometimes make mistakes,” the company said. “We are disappointed with the Commissioner’s assessment of the magnitude of these issues given Aetna’s self-reporting and cooperation.”
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