From today’s Gannett newspapers:
A Virginia-based insurance company will issue $2.75 million in refunds and pay a fine of nearly $1 million to settle claims that it had overcharged New York students.
About 22,000 students at 37 colleges across the state will be eligible for a refund from Markel Insurance Company, according to state Attorney General Eric Schneiderman and Financial Services Commissioner Benjamin Lawsky.
The amount of the refund varies based on what year the student was enrolled with the company and what plan they opted for, but the average is expected to be $107 per student, according to Schneiderman’s office.
“This settlement sends a clear message,” Schneiderman said in a statement. “Insurance companies, like everyone else, must play by the rules and work together with government to bring down the cost of health care.”
Markel offered insurance plans at colleges across upstate and in the Hudson Valley, including Monroe County Community College and Nazareth College in the Rochester area, Nyack College in Rockland County and Bard College in Dutchess County.
At most schools, students were required to enroll in the plan unless they could prove they had health coverage from another source. At other schools, the plans were optional.
According to the state, some of Markel’s plans didn’t meet the required “loss ratio” between 2007 and 2012. Under state regulations, insurers are required to pay out at least 65 cents of every dollar spent on premium.
You can read the full story here.