AXA Equitable to pay $850,000 to clients

A New York State attorney general, Eric T. Schneiderman, wants AXA Equitable Life Insurance Company to pay $850,000 to its clients for making an undisclosed change to its medical claim reimbursement policy.

Customers in New York, among others, were adversely impacted by the company’s actions, with some receiving lower reimbursements than promised.

Following a communiqué from Schneiderman’s office this morning about the unannounced changes, the insurance company changed its policy to honour the terms of its members’ health insurance plans.

“These consumers paid their bills and played by the rules, only to discover their insurance policies had changed with no warning by AXA Equitable,” said Schneiderman.

He adds, “At the very least, consumers should expect that the terms of their health plans are honored. It is unacceptable for AXA Equitable to switch its claim reimbursement policy to one that pays less, without alerting plan members.”

An investigation by the Attorney General’s Health Care Bureau found that between September 2011 and May 2012 the insurance company used data from a third-party to reimburse medical claims affecting several hundred consumers. The switch resulted in lower medical claim reimbursements for many members than had been the case previously.

AXA Equitable has agreed to reimburse consumers “in an amount that could reach almost $850,000” and $30,000 to cover the investigation cost.

Staff

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