UnitedHealth pays $250K fine for improper ads

UnitedHealth paid a $250,000 fine to resolve charges that it improperly circulated and published advertisements, including television, newspaper and direct mailings, in Vermont, reported the Insurance Journal. The Vermont Department of Banking, Insurance, Securities & Health Care Administration (BISHCA) investigated UnitedHealth and then filed administrative charges that the insurer failed to file certain advertising materials, referencing Medicare Supplemental coverage with the state insurance commissioner.

BISHCA also alleged that some of UnitedHealth's advertising materials were deceptive and misleading. "We were especially concerned when it appeared that United continued some of its advertising practices even after we had called attention to their noncompliance," said Susan Donegan, BISHCA deputy commissioner of insurance. "The size of the penalty imposed on United is intended to express BISHCA's concern with United's alleged behavior," added BISHCA Commissioner Steve Kimbell. "We are going to make sure that every insurance company advertising in this state follows the rules we have in place to protect consumers." Article