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.