The Wichita, Kan.-based company sold insurance policies called Lifestyle Health Plans that were not clear about coverage details and what entity was responsible for paying claims, according to an Aug. 11 news release.
In Washington, Medova sold health plans without approval to 140 small businesses and their 1,487 employees. The company acted similarly in 38 other states and provided benefits to 35,000 people in total. Under a consent order, a federal independent fiduciary has been appointed to administer claims.
Washington issued a $310,000 fine to the company. Medova and Mr. Whitney have also surrendered their insurance producer licenses and will no longer sell policies in the state.
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