Mega Life and Health Insurance Company has many Ohio policyholders. Many of their customers have purchased coverage through membership in the National Association for the Self- Employed (NASE). They also sell supplemental products to individuals and the self-employed and have been offering policies for more than 20 years.
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.
In fairness, that was more than five years ago. Their supplemental coverage today focuses more on specific needs and illnesses, such as cancer, specific accidents, disability expenses and vision coverage. There are still complaints, along with satisfied customers. Ultimately, the final verdict is decided by those persons that purchase their products.
HealthMarkets is a privately-owned entity that offers plans to both consumers under and over the age of 65 along with small-business owners. Some of the companies they own include Mid-West National Life Insurance Company of Tennessee, Chesapeake Life, MEGA Life and Health, and Insphere, which markets products to consumers.
One of their latest partnerships was with Readers Digest in which a Medicare RX Drug Plan (also known as Part B) will be offered with effective dates starting in 2013. Advertising and marketing will be done online and through the hard copy version of the magazine.
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.
Our obligation is to ensure that clients are made aware of the most recent and informative information regarding plans that are sold to consumers in this state. We do not market or sell their products as we feel there are better options from other major carriers such as Anthem, UnitedHealthOne and Medical Mutual. When you view rates on our website, you can easily compare the best policies and easily apply for coverage.