Insurer fined $3.75M for overcharging college students

The New York attorney general's office is requiring Markel Insurance Company to pay $3.75M for overcharging college students on their health plans. Markel's student coverage didn't meet legal requirements for minimum loss ratios, which led to the insurer overcharging about 22,000 students in New York nearly $3 million. The investigation, jointly led by the attorney general and the state department of financial services, also found Markel paid improper broker bonuses, incentivizing brokers to keep loss ratios lower than the legal minimum. The settlement between the state regulators and Markel requires the insurer pays more than $2.75 million in restitution to the affected students and colleges, plus a $990,000 penalty to the state. "With the high cost of college already straining family finances across New York, students and parents shouldn't have to worry about paying even more for health insurance," Attorney General Eric Schneiderman said yesterday in a statement. "This settlement sends a clear message: Insurance companies, like everyone else, must play by the rules and work together with government to bring down the cost of healthcare." Statement

Suggested Articles

Absent adequate reimbursement for time spent on complex patient care, specialists are finding it harder to sustain their practices.

Tennessee released its proposal to CMS to become the first state to convert federal Medicaid funding into a block grant.

Hospital and health system leaders say a lack of data and confusion around reimbursement are barriers to risk-based payment agreements.