10 New York health insurers dinged for contraceptive exemptions

Ten New York state health insurers agreed to collectively pay more than half a million dollars in fines for improperly allowing some employers to claim exemption from providing contraceptive coverage.

Acting Financial Services Superintendent Linda A. Lacewell said May 3 the 10 insurers violated New York insurance law by granting exemption to 30 entities. Ms. Lacewell said that while HHS issued final rules in November 2018 that provide an exemption from the contraceptive coverage mandate in the ACA on the basis of religious beliefs, this does not preempt state law, which is much stricter on the matter.

The 10 insurers must pay a collective fine of $509,000, take corrective actions to solve the issue and reimburse members who paid for their own contraceptives, Ms. Lacewell said.

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