The Colorado Division of Insurance has fined three health insurance companies for violating the state’s insurance laws.
Aetna Health Inc., Aetna Life Insurance Company and Cigna were fined after a review of their operations.
Aetna Health paid a $294,000 fine, Aetna Life paid $330,000 and Cigna Healthcare was fined $32,000 for its violations.
The Aetna companies were accused of having missing or incorrect information in their policy forms and provider contracts, providing incomplete information about creditable coverage and failing to pay claims timely and accurately.
The company, according to the state, also failed to comply with notification requirements for appeals by customers and did not make sure that panel member were qualified to review the cases being presented.
Aetna Life also failed to offer coverage under the state-mandated basic and standard health plans to individuals whose coverage under a small-group plan ended or who were denied coverage uner an individual plan.
Cigna’s violations occurred after the company stopped marketing its HMO products in Colorado in 2008. The company failed to give customers 30 days to provide additional necessary information before denying claims and failed to have a licensed doctor sign forms once cases had been reviewed.
All three companies have paid their fines.
The insurance department typically fines only a handful of companies in any given year.