Aetna, UnitedHealthcare and two other insurance companies will pay a combined $4.6 million to New York state to settle allegations the companies charged unapproved rates for student insurance.
According to a May 11 release from the state's department of financial services, the insurers contracted with higher education institutions in New York to provide blanket insurance plans to students. The state alleges the insurers charged students and their dependents premium rates higher than those approved by the state's financial services department.
Aetna will reimburse 3,740 students charged higher rates at New York colleges who were enrolled in its plans in 2019-2020, and 13,226 students enrolled in its plans in 2020-2021, according to documents from the financial services department.
Aetna's total reimbursements to students equals $1.8 million, and the company will pay $2.8 million in penalties to the state.
UnitedHealthcare will reimburse 7,153 students enrolled in its plans in 2019-2020 and 5,260 students enrolled in 2020-2021, according to the state's documents. The company will pay a total of $1.4 million to students and $1 million in civil penalties to the state.
Another health insurer, Wellfleet, will reimburse students for $84,333 and pay $500,000 in penalties to the state. 4Ever Life Insurance will pay a civil penalty of $300,000.