CIGNA HealthCare – Centennial State Inc. is the latest insurer to come under fire. After an examination by the Colorado Division of Insurance, the company was fined $32,000 for violating state laws in 2007.
According to a Department of Regulatory Agencies release, CIGNA informed the state insurance department that it had stopped marketing HMO products in Colorado in August of 2008. A market conduct examination found the company had failed to provide additional information within 30 days before denying claims. Furthermore, CIGNA failed to provide written denials signed by licensed physicians.
Earlier this month, Aetna was hit with a much steeper fine for indiscretions at two of its companies. Investigations at Aetna Health Inc. and Aetna Life Insurance Company uncovered multiple violations during 2008, resulting in a collective fine of $624,000.
Both companies were fined for providing missing, incomplete or inaccurate information in policy forms, provider contracts and certificates of creditable coverage. The companies also failed to pay claims timely and accurately.
Aetna Life Insurance Company was fined an additional $36,000 for failing to offer coverage under state-mandated basic plans to individuals whose small group coverage had been terminated or who were denied coverage under an individual plan.
In addition to the fine, both companies were required to document changes implemented to correct the violations, and to submit their improvement to the insurance department within an undisclosed timeframe.