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Connecticut To Expand Short-Term Health Claim Review

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Nutmeg State insurance regulators are taking a broader look at the actions of 3 related companies that sell temporary medical insurance.

The Connecticut Insurance Department says it will be having an independent entity review on all claims denials for pre-existing conditions filed from 2001 to the present under short-term health insurance policies written by John Alden Life Insurance Company, Time Insurance Company Union Security Insurance Company.

The companies all are units of Assurant Health, Milwaukee, a subsidiary of Assurant Inc., New York,

“The department’s independent review entity also will review any efforts by the Assurant units to cancel short-term health insurance policies,” Connecticut Insurance Department officials say in a new consumer alert.

“Assurant Health is cooperating fully with the Connecticut Department of Insurance’s Investigation and seeks to address any concerns that the department has regarding our practices in Connecticut,” Assurant Health says in a statement about the new consumer alert.

Connecticut department officials announced, in March, that they had entered into a consent order with the 3 Assurant Health short-term health insurance units.

The Connecticut department had accused the units of wrongly denying some claims based on the alleged existence of pre-existing conditions, and also, of waiting too long to investigate appeals involving concerns about pre-existing conditions.

Under the terms of the order, the Assurant Health units are supposed to pay restitution to the affected policyholders that the department discovered on its own, and the department also hired an independent entity to locate other policyholders who might qualify for restitution payments, officials say.

Originally, the department was going to require the Assurant Health units to notify policyholders affected by claims denials about the review process. The policyholders would have had to ask Assurant Health for reconsideration of their claims, officials say.

“This is to ensure that all eligible insureds will have their claims reviewed for possible payment of the claims with interest,” officials say.

A copy of the consumer alert is on the Web at