Wouldn’t it be nice to have an alternative that wasn’t in the business of trying to rip you off?
Attorneys on Wednesday filed a class-action lawsuit against Nationwide Insurance, claiming the company sold Washington consumers illegal health plans that left them without sufficient coverage.
The suit, filed in Seattle’s U.S. District Court on behalf of more than 400 plaintiffs, says Nationwide “unfairly and deceptively” sold insurance plans to Washington residents without authorization from the state insurance-commissioner’s office.
While some plans pay a percentage of medical expenses — for example, an 80/20 split between provider and consumer — or set out-of-pocket maximum expenses for consumers, fixed-payment indemnity plans set lump-sum payout limits on the amounts that insurers will provide.
But those limits often aren’t nearly enough to cover medical expenses, said Joshua Welter, of Washington Community Action Network, a grass-roots organization supporting issues such as health-care reform.
“Even though you think you’re covered, you’re not,” Welter said.
Joshua and Washington CAN are part of Health Care for America Now, and during today’s press conference, Joshua plans to point out scams like this are exactly why we need a public health insurance option.
Remember, for more information on insurance company bad practices, you can take a look at InsuranceCompanyRules.com.