Policyholder Says John Alden Skimped On Health Coverage

Law360, New York (May 16, 2011, 1:26 PM EDT) -- A John Alden Life Insurance Co. policyholder filed a putative class action in Montana on Friday claiming the company underpaid its insureds on health care costs despite promising customers higher reimbursements.

Plaintiff Paul Koberg alleged that the insurer’s health care policies guaranteed coverage based on the “usual, customary and reasonable” costs for such services, but paid policyholders substantially less than they expected.

“Defendant does not actually reimburse its insureds for the ‘usual, customary and reasonable’ costs of the health care they receive, as that phrase would...
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