Health Insurer Fined Over Misleading Ads
New York State insurance regulators have fined American Medical and Life Insurance Company (“AMLIC”) for marketing limited health insurance policies through “misleading” advertisements which promised “peace of mind” for just $5 a day. In reality, AMLIC policies were not comprehensive health insurance and left patients only with huge hospital bills.
For example, AMLIC advertised that its health insurance policies were a low cost option for the uninsured and underinsured, intimating that its policies provided comprehensive coverage. In fact, the policies were limited coverage policies that did not provide comprehensive coverage. Moreover, in one television advertisement the narrator states that AMLIC health insurance is available, “regardless of any pre-existing conditions,” while the print on the television screen stated, “most pre-existing conditions accepted” and the fine print on the policy itself stated that there was a six-month waiting period.
New York’s two year investigation of AMLIC found a Rochester woman who had purchased an AMLIC policy and ended up with hospital bills totaling $28,000. Her AMLIC limited policy covered only $1,164 of the hospital bills. In another case, a 36 year old New Yorker who suffered a stroke found out that his AMLIC policy covered just $250 in medical bills, leaving him with a bill of $29,917.
In commenting on AMLIC’s misleading ads, Governor David Paterson said, “Many New Yorkers are desperate for affordable health insurance. Unfortunately, some businesses are taking advantage of that need to sell limited health insurance in ways that mislead consumers into believing they are getting full coverage.”
If you purchased a health insurance policy from American Medical and Life Insurance Company, please contact us to discuss your legal options.
I purchased health insurance with RBA in 2009 prior to the birth of my son on November 11th of that same year. I have paid the doctor office bills that should have been covered, but still have outstanding bills with the hospital. I have called the company every month to find out the status of payment and was routed from one place to another several times. I was given 3 or 4 different addresses for the claims to go to and then they would say they were processing them and then the next month, another address. I canceled the insurance in April or may 2010, but still continued to call them every 30-60 days. Finally in february 2011 I was told that all claims prior to may 2010 were in litigation and that here was nothin I could do but wait. I am in Colorado and don't know what my legal rights are. Luckily the hospital is being patient so far, but I feel obligated to them and don't like just telling them to wait each month. I don't know what my options are and I don't have much disposable income, so paying them would put a financial strain on my family of 4 that is struggling to make ends meet as it is. Please let me know if you can help me or possibly point me in he right direction. Thank you in advance for your time in answering my questions.
I too have been stuck with thousands of dollars when I was told I was covered. They took my money but paid almost nothing. On a $10,000 hospital emergency bill, they said they only have to pay 97 CENTS and haven't even paid that. I want my paid premiums back and advice on what to do with all my medical bills sitting on the table that I can't pay due to unemployment. I'm still waiting for the lawyers to call me back. I'm so upset and angry. They need to pay a price for this kind of deception on the vulnerable.
I was scammed by them too. I paid all my premiums on time and yet every claim was rejected for some illegitimate reason. I am going to sue them and I hope everyone who has been a victime joins this class action suit. They took advantage of people in dire need of heal insurance and stole from us. They should be punished!!
I paid nearly $450/month for past year for my wife to be covered by Cinergy. A few days before delivering baby they switch underwriters and strip away our maternity coverage.
I just got stuck with a $10,000 bill and no recourse since our baby was born a few days later. no warning nothing we could do. Do I get a refund for a year of payments to them ? NO.
Great post.