Ky. Fines Humana Over ACA-Skirting Policy Renewal Letters

Law360, New York (September 25, 2013, 8:11 PM EDT) -- Kentucky regulators have reprimanded health insurer Humana Inc. for nudging policyholders to lock in their existing coverage — and avoid Affordable Care Act mandates — before the insurance exchange’s Oct. 1 rollout.

In a Sept. 10 order, the commonwealth’s Department of Insurance hit the health carrier with a $63,430 fine — $10 for every allegedly misleading renewal letter to individual policy buyers — saying the company had offered an amendment to customers’ existing policies that was not pre-approved, in violation of Kentucky's insurance code.

The amendment...
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