The multi-state HealthMarkets settlement was announced in July 2008 in which the company and its affiliated companies, MEGA Life and Health Insurance Company, Mid-West National Life Insurance Company and Chesapeake Life Insurance Company agreed to pay $20 million for bad faith practices across the nation. So, how did the states share in the $20 million?

Who got what?

According to information we obtained from the Washington Insurance Commissioner’s office, 48 states plus Guam and Puerto Rico received a portion of the $20 million settlement. Only Massachusetts and Delaware did not participate. The states who received the highest amounts were:

Texas $2,420,427
California $2,122,438
Florida $1,848,983
Washington $1,228,509
Indiana $953,001

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The complete list

Here is the complete list of how each state shared in the $20 million:

Alabama $185,933
Alaska $89,317
Arizona $418,363
Arkansas $194,368
California $2,122,438
Colorado $684,001
Connecticut $261,721
Delaware 0
D.C. $128,767
Florida $1,848,983
Georgia $516,806
Hawaii $4,554
Idaho $229,399
Illinois $953,001
Indiana $483,243
Iowa $111,530
Kansas $266,695
Kentucky $105,626
Louisiana $218,997
Maine $253,760
Maryland $288,025
Massachusetts 0
Michigan $447,301
Minnesota $63,722
Mississippi $376,145
Missouri $251,469
Montana $98,630
Nebraska $78,176
Nevada $176,317
New Hampshire $237,828
New Jersey $113,001
New Mexico $149,969
New York $56,045
North Carolina $774,666
North Dakota $5,503
Ohio $569,310
Oklahoma $327,396
Oregon $371,069
Pennsylvania $707,217
Rhode Island $200,257
South Carolina $372,911
South Dakota $17,970
Tennessee $464,422
Texas $2,420,427
Utah $139,779
Vermont $6,012
Virginia $355,138
Washington $1,228,509
West Virginia $100,207
Wisconsin $433,442
Wyoming $90,276

Guam $8
Puerto Rico $1,353

Not off the hook yet…

The insurers are not off the hook yet. In fact, they may be on the line for an additional $10 million if they don’t improve in the following areas by the end of 2009:

• Claims handling
• Complaints and grievances
• Agent training and oversight
• Identification of company
• Transparency of the companies’ relationship with associations
• Establishing and maintaining a compliance program
• Cancellation, non-renewal and discontinuance notices

If HealthMarkets or one of its affiliated companies has treated you in bad faith, contact an experienced bad faith insurance attorney to discuss your situation. Consultations are free, without obligation and strictly confidential. To contact an attorney, please click here.

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