Officials with the Kentucky Department of Insurance have fined Humana $65,000 after investigating complaints about a letter the company sent to policyholders.
In August, letters were sent to over 6,000 members, saying they had 30 days to renew their plans for 2014, or they would have to choose a more expensive option that complies with the Affordable Care Act.
Department of Insurance spokeswoman Rhonda Sloan says the letters didn’t disclose enough information to policyholders, including that they could wait and compare plans that will be offered on the state’s health insurance exchange beginning on Oct. 1.
Sloan adds that Humana used an unapproved form in its letter to policyholders.
“That’s actually what the fine was for, was using an unapproved form. Now we’ve had other concerns and those are the concerns that we’re in the process of addressing now,” she says.
Further fines could be assessed to Humana, pending an ongoing investigation, Sloan says.
A Humana spokeswoman said the company is working with state regulators and does not intend to appeal its current decision.
Meanwhile, Sloan says as the Affordable Care Act is implemented, people will be receiving a lot of unsolicited insurance information and should be careful.
“We are seeing that there are some scam artists out there who always show up when there is confusion and lack of knowledge and certainly take advantage of people. And those are some things that we’ve certainly heard some cases from other states and something we’re trying to head off in Kentucky.”