Mega Life and Health Insurance Company has many Ohio policyholders. Many of their customers have purchased Ohio health insurance coverage through membership in the National Association for the Self- Employed (NASE).

Is Mega Life deceptive and do they use unfair practices to promote their policies? Well…in Massachusetts, apparently they do. As a result of the state’s legal action, Mega Life has agreed to pay more than $17 million in penalties, other costs and consumer relief. And more importantly, while Mega Life can still conduct business here in Ohio, they are no longer permitted to sell health plans in Massachusetts for five years. And eventually, they must pull completely out of the market.

In addition to Mega Life’s problems in Massachusetts, in May, A.M. Best Company downgraded the credit rating of HealthMarkets Inc., the parent company of Mega Life. The rating downgrade primarily reflected a continued decline in revenue premium and increased financial leverage. Lower agent sales, the US economic condition and competitor pressure hurt premium revenue in 2008.

Mega Life often targets small business owners and the self employed in Ohio. Many of their products are packaged with association memberships in the National Association for the Self-Employed. Some of Mega Life’s problems in Massachusetts were because they apparently did not cover certain medical procedures that were specifically required to be included in their health insurance policies.

As Ohio’s leading resource for Ohio health insurance plans, my obligation is to insure that my clients are made aware of the most recent and informative information regarding Ohio health insurance companies.

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