Ohio Department of Insurance Director Mary Jo Hudson says a health insurer operating in the state failed to comply with a new state open enrollment law.
Ohio now requires individual health insurers in the state to offer open enrollment coverage available to people with pre-existing health conditions at premium rates limited by law.
Chesapeake Life Insurance Company, a unit of HealthMarkets Inc., North Richland Hills, Texas, "has failed to meet this legal requirement," Hudson says.
Hudson has issued an order that suspends Chesapeake Life's ability to write new business in Ohio. The order requires Chesapeake to continue to service any existing policies or contracts issued to Ohio residents.
Chesapeake intends to sell individual health insurance plans in Ohio in the near future, the company says in a statement.
But "Chesapeake does not currently have any in-force individual health insurance policies in Ohio and is not actively marketing any individual health products in the state," the company says. "Chesapeake has been working with the Ohio Department of Insurance to gain proper approvals for our individual health products and was surprised by this action. We will continue to work with the department to resolve any issues and will receive all necessary approvals prior to marketing the individual health insurance products."
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