U.S. insurers face $600 million in Obamacare penalties over health care law breach
The insurer that was sued by President Donald Trump’s administration for misleading consumers about the Affordable Care Act has agreed to pay a $600,000 fine, an insurance administrator said Friday.
U.S., state and local governments have been sued for failing to comply with a law that requires them to offer coverage that is comparable to plans that existed in the 1990s.
The U.K.-based insurer had been seeking $100 million in penalties for violating the law by failing to disclose misleading claims and for not having sufficient information about insurers offering coverage in the marketplaces in order to determine how much insurers were paying.
The settlement, announced Friday by the Office of the Inspector General, includes $120 million from the states and $40 million from insurance companies that have not yet been sued.
It includes penalties that will be paid over a period of four years.
The penalties will be distributed to the insurers, according to the office.
The deal includes a provision that allows insurers to appeal the ruling to the U.N. Human Rights Council.
It also includes provisions that make it harder for states to appeal violations to the Human Rights Commission.
The agreement is the latest in a string of settlements with insurers.
In July, the U,K.-run British insurer, UCL Group, agreed to settle claims with a U.P. government body that was investigating a possible bribery scheme in which some U.L.G. employees received kickbacks from U.U., and in November, Anthem Inc. agreed to a $2.7 billion settlement with U.C.
Lungo, which has said it is the victim of a cover-up.