Gov. Andrew Cuomo today announced four insurers, including one in Onondaga County, will pay $2.2 million in restitution to more than 3,400 New York seniors statewide for overcharging them on insurance policies in violation of state law.
The refunds, which are for Medicare-supplemental insurance (commonly called “Medigap”) products, average $624 per policyholder, the governor’s office said in a news release.
The insurers will begin distributing of the funds on September 30.
(Sponsored)
In the Market to Build? Get Started in 4 Simple Steps
Finding the perfect home isn’t always easy, especially in our world today. The U.S. Housing Shortage has created an ongoing challenge for homebuyers across the nation, opening the door to
You Filed Your 2022 Tax Returns, Now Let’s Look Ahead
Another busy tax filing season is behind us and with a return to normalcy this year, without significant processing delays at the Internal Revenue Service (IRS), we can look forward.
Benjamin Lawsky, superintendent of financial services, ordered the refunds after a Department of Financial Services (DFS) investigation uncovered that the companies had failed to comply with New York laws that require insurers to spend a minimum amount of premium dollars on medical bills, rather than on administrative expenses or excess profits, the governor’s office said.
The four insurers that are providing the refunds include First United American Life Insurance Co. of Salina, the governor’s office said.
First United American is a New York subsidiary of McKinney, Texas–based United American Insurance Co., according to the subsidiary’s website.
The other insurers include Rochester–based Excellus Health Plan, Inc., which is better known as Excellus BlueCross BlueShield, Central New York’s largest health insurer; American Progressive Life and Health Insurance Co. of New York of White Plains; and Transamerica Financial Life Insurance Co. of Harrison, according to the governor’s office.
The insurers will distribute the restitution to policyholders throughout the state, Cuomo’s office said.
“We simply will not tolerate insurers overcharging and shortchanging seniors in New York,” said Gov. Cuomo said in the news release. “State law requires insurance companies to spend a minimum amount of premium dollars on medical costs in order to keep healthcare coverage affordable for consumers, yet these companies acted otherwise.”
First United American Life Insurance Co. will pay a refund amount of nearly $34,000 and distribute the restitution among about 117 policyholders, according to the state.
Excellus Health Plan, Inc. will pay a refund of nearly $315,000, distributing the restitution among about 427 policyholders, Cuomo’s office said.
American Progressive Life and Health Insurance Company of New York and Transamerica Financial Life Insurance Company will distribute refunds totaling more than $1.8 million, distributed among more than 2,900 policy holders statewide, according to the governor’s office.
Contact Reinhardt at ereinhardt@cnybj.com
