Business
Maryland fines Coventry for unclear policy
NEWS IN BRIEF — Posted May 4, 2009
Coventry Health Care's Delaware affiliate has been ordered to pay $25,000 and to fix its benefit summaries for members to more thoroughly explain how the company determines out-of-network benefits.
The Maryland Insurance Administration found that Coventry Health Care of Delaware materials didn't explain that the plan only pays a percentage of allowable charges for out-of-network care, and that the member could be responsible for paying the remainder of the out-of-network charges.
The company did not admit any wrongdoing but agreed to correct its materials within 120 days and pay the fine.
Note: This item originally appeared at http://www.ama-assn.org/amednews/2009/05/04/bibf0504.htm.