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DENVER—Texas-based health insurer HealthMarkets Inc. has agreed to pay $20 million to Colorado and 28 other states to settle allegations that it misled consumers and mishandled claims.
Colorado’s share of almost $650,000 will go to the state general fund.
The agreement, announced last week, resolves a multistate examination that insurance regulators started in 2005 because of consumer complaints.
The settlement includes HealthMarkets and subsidiaries MEGA Life and Health Insurance Co., Mid-West National Life Insurance Co. of Tennessee and The Chesapeake Life Insurance Co.
In addition to the $20 million penalty, HealthMarkets could pay $10 million more if it fails to meet performance standards set by the agreement.
