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Consumer advocacy group Citizens for Economic Opportunity on Thursday dropped a lawsuit filed against Aetna over allegations that the company marketed limited-benefit health plans designed to mislead consumers about the level of coverage provided by the plans, the Hartford Courant reports (Levick, Hartford Courant, 8/10). The group decided to drop the lawsuit because of a new state law that will require limited-benefit health plan policies and marketing materials to include warnings in capital letters in 12-point boldface type. The lawsuit, filed last October in a Hartford Superior Court in Connecticut, named as defendants Aetna, company subsidiary Strategic Resources Company and the state Department of Insurance, which in September 2005 authorized the sale of the limited-benefit health plans in the state. According to the lawsuit, the limited-benefit plans are designed to help Connecticut employers recruit and retain employees. SRC, which Aetna acquired in 2004, markets health plans with annual benefits caps as low as $1,000. Aetna said most of the limited-benefit health plans sold to Connecticut employers have annual benefits caps of $10,000 and that none of the plans has caps of $1,000. Eight Connecticut employers offer limited-benefit health plans, which are designed for part-time and seasonal workers who otherwise would not have coverage, Aetna said (Kaiser Daily Health Policy Report, 10/27/06). Comments Phil Wheeler, founder and president of the group, said that because of the new state law, which "we believe will at least allow consumers to be forewarned about the product's limitations, we have decided to drop the lawsuit." However, he said that "shortcomings" of limited-benefit health plans are "still bad" for consumers. Aetna spokesperson Cynthia Michener said that the company will "remain committed to providing clear materials to consumers so that they understand what these plans do and do not cover" (Hartford Courant, 8/10). Reprinted with kind permission from http://www.kaisernetwork.org. You can view the entire Kaiser Daily Health Policy Report, search the archives, or sign up for email delivery at http://www.kaisernetwork.org/dailyreports/healthpolicy. The Kaiser Daily Health Policy Report is published for kaisernetwork.org, a free service of The Henry J. Kaiser Family Foundation. © 2005 Advisory Board Company and Kaiser Family Foundation. All rights reserved.
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