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BOSTON, Jan 6 (Reuters) - Three UnitedHealth-owned insurance companies collectively must pay over $165 million for engaging in widespread deceptive conduct that misled thousands of consumers in Massachusetts into unknowingly buying supplemental health insurance, a state court judge has ruled.
Massachusetts Attorney General Andrea Campbell on Monday hailed Suffolk County Superior Court Judge Helene Kazanjian's decision, saying it awarded the state the largest civil penalties it has ever recovered under the state's consumer protection law.
Kazanjian, in an order dated Dec. 31 said the penalties were warranted on the grounds that HealthMarkets, which UnitedHealth acquired in 2019, and two of its subsidiaries marketed major medical and supplemental insurance in bundles from 2012 to 2016 in a way that deceived consumers into buying supplemental policies.
The decision followed a non-jury trial to assess damages after the defendants had already been found liable for violating the Massachusetts Consumer Protection Act and an earlier consent judgment with the state.
Kazanjian said sales agents were trained to hide the costs of individual policies so consumers did not know what they were buying. She called the practice "egregious," saying it "targeted vulnerable consumers who could least afford their products.
"For years, the defendants preyed on financially vulnerable individuals, deceiving them into buying products they didn't need or couldn't afford," Campbell said in a statement. "This order holds the companies accountable and will provide meaningful restitution to consumers across the Commonwealth."
Massachusetts Attorney General Andrea Campbell on Monday hailed Suffolk County Superior Court Judge Helene Kazanjian's decision, saying it awarded the state the largest civil penalties it has ever recovered under the state's consumer protection law.
Kazanjian, in an order dated Dec. 31 said the penalties were warranted on the grounds that HealthMarkets, which UnitedHealth acquired in 2019, and two of its subsidiaries marketed major medical and supplemental insurance in bundles from 2012 to 2016 in a way that deceived consumers into buying supplemental policies.
The decision followed a non-jury trial to assess damages after the defendants had already been found liable for violating the Massachusetts Consumer Protection Act and an earlier consent judgment with the state.
Kazanjian said sales agents were trained to hide the costs of individual policies so consumers did not know what they were buying. She called the practice "egregious," saying it "targeted vulnerable consumers who could least afford their products.
"For years, the defendants preyed on financially vulnerable individuals, deceiving them into buying products they didn't need or couldn't afford," Campbell said in a statement. "This order holds the companies accountable and will provide meaningful restitution to consumers across the Commonwealth."
