John Hancock Life & Health Insurance will pay New York customers and their beneficiaries back nearly $21.6 million after a state investigation found the company prematurely terminated 156 long term care policies.
The company will also pay more than $2.2 million to the state's Medicaid program and a $2.5 million fine for violating the state's insurance law, according to an Aug. 17 news release from the the New York Department of Financial Services.
The premature terminations occurred between February 2001 and July 2019 and resulted in 27,161 days of unpaid benefits, according to the news release. The improper terminations may have led to beneficiaries paying long term care expenses out of pocket or accessing Medicaid prematurely.