Two units of national insurer Aetna paid a combined fine of $624,000 for violations of Colorado’s insurance laws regulators say impacted consumers.
Marcy Morrison
The Colorado Division of Insurance recently completed market conduct examinations on Aetna Health Inc., and Aetna Life Insurance Co., covering calendar year 2008. After identifying a “number of issues,” according to regulators, the health unit was fined $294,000 and the life division, $330,000.
The office said the violations included missing or incorrect information provided in policy forms and provider contracts, failing to pay claims in a timely and accurate manner and providing incomplete information in certificates of creditable coverage.
Aetna Life also had violations for failing to offer coverage under the state-mandated basic and standard plans to individuals whose coverage under a small group plan had terminated, or who were denied coverage through an individual plan.
Both companies submitted payment of the fine March 18, according to insurance regulators.
“These market conduct examinations and resulting fines reflect the responsibility for carriers to maintain the highest standards when delivering services to Colorado consumers,” said Colorado Insurance Commissioner Marcy Morrison in a statement. “Companies must fulfill their responsibilities to the consumers and treat them fairly.”
In addition to the fines, both companies are required to document changes made to correct problems identified in the market conduct exams within specific timeframes. The units also must report back to regulators in writing, documenting changes and improvements.
Aetna life, health insurance units fined $624,000 for Colo. violations via IFAwebnews.com .
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