Medova Healthcare, which sold illegal insurance plans through chambers of commerce, has agreed to stop selling in Washington, according to the Office of the Insurance Commissioner. The company also agreed to a $310,000 suspended fine, according to the OIC. It operated in 38 states including Washington and served 35,000 employees nationwide.
Medova sold health insurance plans to almost 140 small businesses in the state, covering 1,487 employees, through chambers of commerce. One of them mentioned in the OIC investigation was the Lakewood Chamber of Commerce. The chamber did not respond to inquiries.
The health plans were marketed to small businesses as traditional insurance plans, but they were self-funded Employment Retirement Income Security Act health benefit plans. Under an ERISA plan, the employer is responsible for paying for its employees’ claims and the insurer that sold the coverage only administers the plan. ERISA plans are regulated by the U.S. Department of Labor instead of Washington state.
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Have any questions regarding this notice? Please contact your Total Benefit Solutions health insurance specialists at (215)355-2121.