The letters stated, “Due to Missouri legislation, Humana is required to terminate your current policy on December 31, 2013 and replace it with a new policy with 2014 ACA benefits starting January 1, 2014.” However, there was no such legislation enacted in Missouri, according to the report.
In addition, the letters said premium prices for 2014 plans that were compliant with the Patient Protection and Affordable Care Act were under review by the state of Missouri. However, insurance rates are not required to be filed in Missouri, and the insurance regulators in the state do not approve health insurance rates.
The fine was imposed on Humana by the state of Missouri after numerous consumer complaints regarding the inaccurate letters were made to Missouri’s Department of Insurance, Financial Institutions and Professional Registration, according to the report.
In the regulatory settlement agreement, Humana asserted the letters did contain incorrect information. Specifically, Humana acknowledged the letters should have stated “as prescribed by the Affordable Care Act” instead of “Missouri legislation.” However, Humana maintained that the inaccurate statements were not made for the purpose of misleading policyholders.
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